'No ball-park figure' on cost to upgrade University of Limerick's city centre campus

THE UNIVERSITY of Limerick (UL) president says there’s “no ball park figure” on what it may cost to bring a landmark city centre building it acquired up to standard.

Professor Kerstin Mey and other senior staff of the third-level college appeared before the Public Accounts Committee this week to answer questions on the controversial purchase of the former Dunnes Stores building in Sarsfield Street for €8.3m - €5m above what a council valuation suggested it sell for.

Previous estimates had suggested it could cost a further €200m to make the necessary improvements to the 1970s-era building, which is currently in use by UL.

Since making the acquisition, college bosses have spent a further €890,000 on improvements and upgrades to the former supermarket building.

The chairman of the committee, Sinn Fein TD Brian Stanley pushed to know how much would be required.

But, Prof Mey said she has no detail on what the final cost will be because the full "master-planning" for the Dunnes site had not yet taken place.

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Currently, the city centre campus takes in some 5,618 square metres of floor space and houses the UL FabLab digital fabrication laboratory, an innovation lab, and areas for community engagement.

The college is not currently planning to permanently move any department or faculty to the site, according to a filing it made with Limerick City and County Council recently.

However, the college expects there will be constant footfall and some students and staff could be permanently located there from the main campus.

Prof Mey also admitted there is no funding stream at present, adding UL hopes to secure additional support through partnerships with Limerick City and County Council and the European Regional Development Fund.

Mr Stanley said: “At this point four years later, you’re not sure who’s going to partner up with you and who’s going to pony up the money. You’re not sure what the amount of money is. You’re not sure if you’ve enough money for the upgrade, or even a ball-park figure. I would find that incredible you don’t have some range in terms of where this is going. If I was going to build a house, I wouldn’t start building the foundations unless I had some idea what the final cost would be.”
It comes as another UL executive said the college is "satisfied" with the €8.3m price it paid to acquire the building.
It comes despite a council valuation revealing it was worth €5m less then what the third-level institution paid for the Sarsfield Street venue, which had been out-of-use for 11 years prior to its acquisition in 2019.

UL's human resources director Bobby O'Connor and the other executives faced questions from Oireachtas members on the acquisition of the building and its future plans for it.

There was widespread criticism of the price paid, but in evidence, Mr O'Connor defended the approach.

"In the context of us wanting that building, having that building, and working with that building, I think the university is satisfied," he told members.

He said a council valuation of the complex for just €3.5m was made "in completely different circumstances", pointing out that it was done on the basis of the local authority using compulsory purchase legislation to secure the site, a move which normally brings down a property's value.

"Dunnes Stores wanted €11m for the building, we paid €8m for the building. It was valued at €3.5m in a completely different circumstance. In the circumstances, it had been valued to be put on the Derelict Sites register for a compulsory purchase order. A desktop valuation that was not relevant in the context of a market valuation."

UL bosses have said there are "no regrets" over the purchase of the site, with Prof Mey adding: "We paid money to acquire a strategic and iconic site in the city centre."

However, Dublin TD Paul McAuliffe asked on several occasions whether the university had paid above market rates for the site.
He felt his question was not answered, prompting the Fianna Fail man to say: "The only thing iconic is this breathtaking lack of ability to name the cost of the mistake."

Mr Stanley, who chairs the committee, said he had learnt of an independent valuation of the site from a local auctioneer for €5m.

College executives did not address this claim.

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Questions were raised over the manner in which the proposed purchase came about, with the item being included under any other business in a meeting of the college's governing authority in April 2019.

Mr Stanley said it's "untenable" for the group to be put in this position.

Anger was also expressed at the hearing that a report by auditors KPMG, which arose following complaints about the acquisition process from UL's governing authority had not been shown to this oversight body.

The college cited "legal concerns" over its non-release.

But James O'Connor of Fianna Fail said it's "astonishing", "utterly laughable" and "mystifying" that no-one on the governing authority had seen the report.

Mr Stanley said there is a "big credibility issue" over the governing authority not being able to see the report.

Prof Mey said: "We share the frustration of not being able to share the report," adding it's her hope the authority will eventually be able to view it.

Independent Wexford TD Verona Murphy said UL's management have "no credibility", adding it's evidence to the committee amounted to an "arse-covering exercise" - language she was criticised for using.

"It's gone. The public who are looking in now see the squandering of €8m trying to be justified, and hidden behind a KPMG report," she said.

Another member of the committee, Sinn Fein's John Brady criticised UL executives for being "less than helpful" and "evasive" in their approach to the body.

At the start of the hearing, Prof Mey told the committee that since she was installed as president in 2021, UL has become a "much-changed organisation" which is run with "prudence, sustainability and confidence."

She said there had been changes in structure, culture and personnel.

Former practices, she added, had been eradicated, and there has been the introduction of high standards of transparency, accountability and probity.

She did say there had been attempts to undermine her personal integrity from a "residue within our institutional culture".