Galway City Council has approved plans to seek a €60m loan to cover "significant capital investment".
A substantial chunk of the money will be used to fit out a new office building, which will house the Council's headquarters.
The local authority purchased the structure, in the Crown Square development, in late 2022 for €44.5m (including VAT and Stamp Duty).
Since then, it has fallen in value and has yet to be occupied. Recent analysis of the commercial property market suggests the building would fetch between €28m and €29m.
Chief Executive of Galway City Council Leonard Cleary told this afternoon’s meeting of the authority that the loan application would help fund essential projects and that it would give certainty in relation to capital investment.
Director of Finance Helen Kilroy said the capital fund would be used to redevelop the city’s museum; for road infrastructure projects; new and enhanced sports facilities as well as the fit out of the new Council building, which she described as a "priority investment".
It will also be employed to upgrade the city’s public lighting infrastructure.
No breakdown of costs involved has been provided, with the Council citing commercial sensitivities, given the tendering process that will apply to many of the projects.
A repayment term of 30 years would apply, with loan repayments of €3.1m a year, at an interest rate of 3.35%.
Approval is being sought now, so that the financial approval can be factored into budget considerations for 2026.
The loan application will be made to the Housing Finance Agency, administered by the Department of Housing.
Social Democrats Councillor Alan Curran said he was concerned about the lack of available information and the speed at which the decision was being taken, saying this made it difficult for representatives to weigh up the merits of the proposal. He called for the vote to be deferred until more detail was provided.
Fine Gael Councillor Shane Forde queried the interest rate on the loan and asked if a better deal was available.
Fianna Fáil's Michael Crowe acknowledged that the application involved an enormous amount of money but said it was an investment in the city and merited support on that basis.
Social Democrats Councillor Eibhlín Seoighthe was critical of, what she termed, an absence of transparency and fairness in relation to the proposal.
She said that there was a greater need to improve the Council's provision of housing and that instead of focusing on "shiny projects", attention should be on inclusive measures that would benefit those in real need.
Mayor Mike Cubbard said every project that would benefit from the loan would be tested and subject to a value for money audit, which he said would give confidence to the people of the city.
A motion to approve the loan application was passed by 15 votes to 2, with one councillor absent.
Both Social Democrats councillors oppossed the proposal.
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