The proposed "Mahon Point 2.0" mixed use development will produce an monetary impact of €3.1 billion over a 25-year period, an economic impact study has estimated.
Last month, the owners of Mahon Point in Cork, Deka Immobilien, lodged plans with Cork City Council for the major expansion of Mahon Point Shopping Centre.
The Mahon Point 2.0 application involves the addition of over 10,000m2 of floor space "to meet demand which is strong".
In response to views expressed by Cork City Council on the need for housing at the location, the proposed development also includes 251 new apartments.
In response to the scheme, The Cork Business Association (CBA) in a submission has called on the City Council to include a condition in the permission that no additional retail space be permitted until such time as St Patrick Street's and the shopping centre within Cork City Central island are fully occupied or have 90% occupancy.
The CBA submission states that the inclusion of such a condition "would ensure that Mahon Point complements rather than competes disproportionately with the city centre".
The CBA has also called on the Council to reserve the planning and development contribution levied on the Mahon Point expansion exclusively for improvements to St Patrick's Street.
The submission states that "the long term viability of Cork depends on a thriving St Patrick's Street and the expansion of an out of centre retail complex presents a clear opportunity to re-invest in this essential asset".
The submission states that the CBA supports the Mahon Point 2.0 development in principle.
In the economic impact study lodged with the plans, PMCA Economic Consulting state that the capital cost of Mahon Point 2.0 will be €268m.
The report, by Dr Pat McCloughan, states that the applicant envisages construction commencing in the second half of 2026 and completion of the development in mid-2029.
Dr McCloughlan estimates the €3.1 billion economic impact over a 25 year period from the total value output of €1.44 billion, total wages of €1.48 billion, total gross value added (GVA) of €717.46m and payments to the exchequer of €128.4m.
Dr McCloughlan states that "a number of large retailers have expressed interest in locating to the facility while some existing occupiers are looking for more space".
The report estimates that during the construction phase, 939 jobs will be created through direct, indirect and induced impact.
During the operational phase, 4,374 jobs are estimated to be created under the same headings.
Dr McCloughlan states that such a mixed use scheme "could not occur in Cork City due to lack of suitable large-scale development space currently".
He states that the €3.1 billion monetary impact dwarfs the total capital cost of the project of €268m "and points to the overall added value that will be due to the proposed development".
A decision is due on the planning application early in September.
Reporting by Gordon Deegan
