The Land Development Agency (LDA) claimed it should not be hit with a derelict site levy on a property because it was a "state authority" and a masterplan was in place to redevelop it.
In discussions with Dublin City Council, the agency said legislation appeared to exclude them from the charge because their only shareholders were government ministers.
However, the council said the LDA's property at Thomas Court in Dublin was not exempt and that a levy of €42,000 per year would have to be paid.
In a letter to the land agency, Dublin City Council said the money was owed for both 2022 and 2023 which, with interest, came to a total of €88,725.
A further €42,000 was paid in 2024 but the site was revalued last year from €600,000 to €350,000, significantly reducing the charge.
A new levy for the property - located at 1-3 Thomas Court - was set at €24,500, according to records released under Freedom of Information.
The LDA had originally tried to say they should not be charged, telling the city council a plan for the site was just about to be finalised.
An email in late 2022 said: "The Minister for Housing and the Minister for Public Expenditure are the LDA's sole shareholders".
"Therefore, as the LDA's sole shareholders are members of the Government, in my view, the LDA is a state authority as defined in the Derelict Sites Act," it added.
Dublin City Council did not agree, saying they had sought legal advice on the status of the property.
"The advice received from our Law Agent is that lands owned by the Digital Hub Development Agency or the Land Development Agency are not state-owned lands, as they are separate entities," said a message.
In further discussions, the LDA asked if it would be possible to use a "bond in lieu" of payment of the derelict site levy.
In response, Dublin City Council said that while it was possible to get a bond instead of payment, these could "prove difficult to get in practice."
Another email from the LDA said the properties were likely to be torn down.
"A key next step for us is to examine the future use of [the property] given that the demolition of same is the most likely outcome due to the very poor condition of the structure," it said.
"The LDA has been liaising with the Dangerous Buildings section … and whilst works have been undertaken to stabilise the façade, full demolition of the structure will be necessary," it added.
The records also detail how the site has been on the derelict sites register since November 2018 before it was purchased by the LDA in 2021.
Asked about the discussions, a spokesperson for the Land Development Agency said a total of €155,225 had been paid in levies on the site.
"Dublin City Council have received all applicable payments from the LDA," they said.
Reporting by Ken Foxe
