Developer owes Town Council over €4 million since 2008

One property developer owes Athlone Town Council just over €4.3 million in development contributions, which is more than half of the total sum owed by developers to the council. However, the council expects to receive between 60 and 65% of that total and credit the developer the remaining amount in return for works carried out during construction. The figures were contained in a Local Government Auditor report on the council's accounts for the year ending 2008 which was discussed at the council meeting on Monday evening. The developer was not named in the auditor's report, nor was their identity revealed by councillors or council staff during the debate. The auditor, Fiona Casey, found that the main issues were the development contributions debt at the end of 2008 of €7.4 million and the lack of any internal audit work. She said that it was unclear how much of this particular €4.3 million owed by one developer since 2008 was collectable, as the council and the developer had yet to agree on the value of works carried out on behalf of the council. In response the council acknowledged that "slow progress" was being made in collecting debts, but that a full review was now underway, including "whatever action is required to collect outstanding amounts". When asked by Cllrs Mark Cooney and Gabrielle McFadden, Athlone Area Director of Services Barry Kehoe said that the council expected to credit the developer between 35 and 40% of the total debt owed. Mr Kehoe said that the developer carried out work on the water mains, sewers, landscaping in public areas and road infrastructure improvements in the town as part of their development. However, he said that the council was having difficulty in evaluating the cost of this work. Cllr Paul Hogan said the figure was "frightening" and wanted to see a huge increase in monies collected by the council this year. Mr Kehoe said that he was confident that the debts would be paid back this year and that "one by one" the council was dealing with every debtor and if unsuccessful, would take legal action. Cllr Cooney was told that the council could charge interest on outstanding development contributions. Cllr Kevin 'Boxer' Moran (FF) said that he wasn't frightened by the debt. "This development is of huge benefit to the town, a great employer. I'm not frightened, I know we'll get the money," he said. "Let's not get whingey about this developer and what he owes. I'm confident that he'll pay." Cllr Alan Shaw said that he was not satisfied with the council's response that "urgent attention" would be given to the issues raised by the auditor. He said he wanted to know how the council would go about tackling the issues. Mr Kehoe told councillors that Westmeath County Council had only appointed an internal auditor a year and a half ago. This auditor had planned to audit Athlone Town Council in 2008, but didn't get around to it. The auditor is currently carrying out an audit on travel and subsistence from 2009. He said that there will be two audits carried out every year.