Tackling Cork City Centre Office Vacancy

 Background
The occurrence of significant vacancy levels in commercial properties in the City Centre hassignificant negative consequences from an economic, community and visual perspective for the City

Council and indeed the City generally. There is currently over 300,000 sq ft of advertised vacantoffice space (above 1500 sq ft) in the City Centre. Added to this the ELUS 2011 shows that the rateof employment loss in the City has been most acute in the City Centre with the loss of 3,502 people and so targeted action needs to be prioritized in this area.
Attracting employment, economic activity and footfall to the City Centre would add to its vibrancyand attractiveness, in turn changing perceptions and helping with the broader objective of marketingand promotion of Cork.

This increased footfall would also drive spin off spending in the city centre’s
shops, entertainment and leisure facilities increasing demand for these services. It is important tonote that the multiplier effect into the local economy from job creation in the City Centre is more intense the closer you are to the core. Finally, the use of buildings removes the risk of dereliction nd visual degradation, and this is very much consistent with the Council’s marketing objectives for the City.

The introduction of a targeted project to tackle an aspect of City Centre vacancy would be inkeeping with the Council’s role as a development agency as well as promoting the interests of the community. The adoption of this pro-active initiative would demonstrate the City Council’s commitment to be a key driver in supporting and attracting economic activity and employment creation. The demonstration of democratic leadership in this manner is particularly important in thecurrent economic climate.

The Approach

The City’s character, both architectural and commercial, is largely derived from the older buildingson key streets in the City Centre, many of which are Protected Structures. On South Mall forexample there are 35 Protected Structures representing 42% of the entire building stock on the street. These buildings are therefore considered worthy of special attention and protection. As such their long term contribution from both a commercial and heritage perspective should be prioritised.While the issue of vacancy in the City Centre affects both newer and older buildings the impacts of vacancy on older heritage buildings is more significant as they need to be maintained and remain in use to ensure their survival and avert the unfortunate tide of dilapidation and ultimate dereliction.
Reversal of the problem of dereliction in heritage buildings is also more costly and challenging whichjustifies a more proactive response early on. As a result it is recommended that this pilot schemefocus on addressing the issue of commercial vacancy in key protected heritage buildings across the City Centre.

 In this way no one area or business sector is prioritised above another allowing for a
universal application of the scheme across this important building stock in the City Centre.

The Scheme

The scheme, as proposed, would comprise the following:

• A capital building improvement grant of up to €15,000 would be given to each qualifying

Protected Structure as part funding to encourage owners to invest in these important
buildings and make them more attractive to the market. Qualifying works would include theexternal fabric of the building but might also include the upgrade of telecommunications in the building, fire safety improvements, energy efficiency measures and other works deemed essential to assist in upgrading and future proofing the building. A fund of €45,000 has been allocated towards this project in the Conservation Budget for 2012. If deemed to be successful consideration will be given to continuing this scheme on an annual basis.


• If refurbishment takes place and the owner succeeds in renting the upgraded commercial space the City Council will apply a grant in lieu of rates waiver on a sliding scale over threeyears to further incentivise the owner and importantly provide an incentive to the end user.

o In year 1 a 50% grant in lieu of rates waiver would be applied
o In year two a 35% grant in lieu of rates waiver would be applied
o In year 3 a 15% grant in lieu of rates waiver would be applied
o From year 4 onwards full rates would apply

• If refurbishment is undertaken and it requires planning permission no development
contributions will apply as these buildings are not liable for the charge under the City
Council’s current Development Contribution Scheme.The committee are requested to recommend that An Chomhairle note the capital grant scheme for Protected Structures (which is provided for in the 2012 budget) and resolve to approve the grant inlieu of rates waiver incentive scheme as outlined above. The detail of the terms of qualifying worksetc will then be set out and the scheme will be advertised and rolled out.