'Important to have our ducks in a row' - Update issued over new €20 million Galway project

Councillors wanted a clearer picture of the final costs and financial arrangements before sanctioning the loan.

The planned regional aquatic centre in Knocknacarra has a funding package of €20.003 million, comprising €11.253 million from the Large Scale Sport Infrastructure Fund (LSSIF), a €5 million philanthropic donation and the proposed €3.75 million loan from Galway City Council.

The meeting heard that the €3.75 million would be advanced as a loan to the company and was intended to be fully recouped by the council once the aquatic centre became operational.

The proposed terms outlined during the discussion were repayment over 20 years at an interest rate of 3.3 per cent, with annual repayments of around €260,000.

Cllr Alan Curran (SocDem) raised concerns about providing public money to an organisation in which the local authority has no equity stake.

He also questioned whether “unforeseen costs would have to be met by the council”, warning “that is leaving us open.”

Council officials told the meeting that an LSSIF requirement meant the council would have to cover any additional project costs.

However, an official said the local authority would seek an agreement with the operator if costs came in higher than anticipated.

“I would not put us in a position that we would have to forfeit any more money if we can avoid it,” the meeting was told.

Cllr Donal Lyons (Ind) said the proposed loan was “higher than we originally envisaged” and said he and Cllr Peter Keane (FF) had been selected as the council’s two representatives on the board of the aquatic centre.

Cllr Keane sought greater clarity on how the funding gap would be bridged and ultimately repaid.

“How are we proposing to bridge the gap? Who is paying it back?” he asked.

He also questioned the potential exposure for commercial ratepayers, while acknowledging that significant work had already taken place on governance arrangements.

Cllr Declan McDonnell (Ind) questioned what would happen to the interest accumulating on the €3.75 million loan before the company was in a position to begin repayments.

Cllr Alan Cheevers (FF) welcomed the investment but said the east side of the city had “lost out”.

Cllr Eddie Hoare (FG) said councillors needed the “full information” and that the finer details of the proposed €3.75 million loan had to be furnished.

“It is important we have our ducks in a row,” he said.

He proposed deferring a decision until tenders are returned, when councillors could be provided with more up-to-date financial analysis, including operating costs.

Tenders are expected to be returned in approximately 12 weeks.

The planned centre will include a competition-standard 35-metre swimming pool, spectator seating, sports hall, gym, sauna and steam room and community facilities.

Funded by the Local Democracy Reporting Scheme