Controversy is looming over a deal between Dublin City Council and a private developer to build 853 homes on public land at the Oscar Traynor site.

The site is similar to O'Devaney Gardens in the north city area where councillors resisted a similar plan for a mixture of private, social and affordable homes to be built on state owned land. 

Members of the Dublin Agreement parties on the city council - Fianna Fáil, Greens, Labour and Social Democrats - are to meet ahead of a vote next Monday on whether to approve the deal.

The plan for both O'Devaney Gardens and Oscar Traynor was the Housing Land Initiative which involved a private developer taking over the development risk under an agreed masterplan for 50% private, 30% social and 20% affordable homes.

The developer would pay a cash sum, provide social and affordable homes at cost and build infrastructure in return for developing the private housing.

The Housing Land Initiative was agreed by councillors in 2017 but many councillors changed their minds when the cost of affordable units was revealed. 

They threatened to vote down the deal for O'Devaney Gardens until the developer Bartra agreed to sell 30% for affordable rental reducing the share of private housing to 20%. 

A similar row is brewing ahead of a vote next Monday as councillors have to agree the transfer of land to the developer for which Glenveagh Homes emerged as the preferred bidder. 

In a report to councillors, Assistant Chief Executive with the council, Brendan Kenny, has warned that if they refuse the deal the procurement process will have to be abandoned and housing will be delayed for about five years. 

The site consists of 17 hectares at the junction of the M1, Port Tunnel and Oscar Traynor Road which is valued at €44 million on the open market. 

The plan involves a 'pepper pot' mix of tenure where private, social and affordable homes would be mixed together in each block. 

Read the council report here

The 172 affordable homes would sell from €230,000 for a one bed up to a maximum of €320,000 for a three bed once the Help to Buy scheme and the Government's site subsidy are factored in. 

Chair of the council's Housing Committee Labour councillor Alison Gilliland said one concern is Glenveagh Homes' funding model which involves selling private homes to progress the development. 

She said the fear is that the private homes will be sold to vulture funds which will treat them as a commodity. 

However in the report, Mr Kenny said this deal removes the financial risk to the council which he said does not have the expertise of a developer or construction contractor. 

As part of the deal Glenveagh Homes would be paying €14 million in cash, building a neighbourhood centre containing retail and restaurant facilities, an auditorium, a childcare facility and greenways through the development.

It will also provide a park along the Naniken River containing "community allotments, orchards, nature trails, skate and scooter park, wetlands with boardwalks, cycle trails and woodlands" according to the report. 

The Dublin Agreement parties have a commitment not to sell off publicly owned land to private developers unless "the monetary benefit to the council far outweighs the longer term social and economic benefits foregone in terms of the necessary development of housing and other public uses".