Sale of Royal Tara could pay for airport purchase
The four agreements under which Galway Corporation leased out Royal Tara China in Mervue, have been made public following a Freedom of Information (FOI) request.
Three of the leases, which were each for 250 years, were signed in the 1950s. The fourth lease was signed in 1977.
The leases have become of interest now that the development of Royal Tara China in Mervue is back on the agenda as Galway City Council plans to relinquish its interest in the property in return for half a million Euros.
The local authority has revealed it is planning to dispose of its freehold interest in the historic building and site, and use the proceeds to fund the deal to buy Galway Airport.
Officials at City Hall briefed Galway City Councillors about its plans to offload its interest in Royal Tara buildings, and the 1.9 hectares of land it sits on.
City Councillors have been advised that the local authority is now obliged to sell its freehold.
“Galway City Council have sought legal opinion on the request by Royal Tara Holdings to sell the property and it was confirmed that City Council are obliged to sell the freehold interest once price exceeds market valuation,” a briefing document says.
The report notes a valuation has been carried out on the site by external consultants based on market values. “The price agreed of €353,000 exceeds the market valuation,” the report says.
The first lease in 1955 was £3,183 for 250 years. The annual rent was one shilling. This is for one acre, one rood and 28 perches which includes house and outhouses. The house could be used for a dwelling for a factory.
The second lease in 1957 was £200 for 250 years. Annual rent is one shilling and this was for an extra three rood and three perches.
The third lease in 1959 was £253.15.6 and this again was for 250 years. Annual rent was one shilling, which was for one acre and 33.36 perches.
The fourth lease in 1977 was for £831.2.5. This lease was for 500 years with an annual rent of five pence.
The fourth lease stipulates that no building whatsoever can take place on the lands at Royal Tara.
The three previous leases explicitly banned the use of the buildings and land for a dance hall, gambling or wagering or public amusements other than a cinema or theatre.
The leases also stipulated, “that they not carry on any noisy trade or offensive trade or offensive manufacture.”
Management at Galway City Council have recommended to Galway City Councillors to dispose of the site.
The recommendation says: “Disposal of freehold interest to Royal Tara China holdings Limited for the total sum of €535,000 with the proceeds of sale used to purchase Galway Airport. The cost of the airport site is €550,000 plus VAT, land registry and legal fees”.
The leases, which have been seen by the Sentinel, were released to former Labour Party Galway City Councillor, Nuala Nolan, under FOI. Ms Nolan was also a former employee of Royal Tara China.
Royal Tara is to be discussed by councillors again in the coming weeks.