Fingal increases levy on developers, and directs more income from it toward parks

Fingal County Council has agreed to increase its levy on new housing and commercial development and direct more of the funding it brings in towards parks and open spaces. 

Based on analysis carried out by the consulting firm EY, the newly raised levies could bring in a yield of €312 million between 2026 and 2030, Brian Murray, a senior executive officer at the council, told councillors at their monthly meeting on Monday.

The council plans to spend that, according to an “indicative” list, on things like the ongoing process of turning Balleally landfill into Rogerstown Park, turning another landfill into Dunsink Park, developing Baldoyle Racecourse Park, turning Donabate’s Ballisk House into a library, and much more.

This is all part of Fingal’s new development contributions scheme for 2026 to 2030, which councillors approved on Monday. 

Under these schemes – every council has one – a developer is required to submit a sum of money towards public infrastructure and facilities in the county when the council grants planning permission for a development.

There is the possibility that the decision could be overridden in future, by changes drawn up by national government.

A spokesperson for the Department of Housing has said that it is carrying out a review of how development contributions work.

“This review will consider the impact of contributions on the viability of housing projects,” they said earlier this month. 

“It will balance this consideration with the need for resources for the infrastructure that is necessary to support the delivery of housing, and the facilities that will result in the creation of sustainable and well-balanced communities,” they said.

“The specific methodology of this review is being actively examined by officials – including what necessary legislative and policy changes would be involved as well as engagement with key stakeholders,” said the spokesperson.

The Fingal scheme, for now

At the moment, under Fingal’s existing scheme, which expires at the end of the month, the council collects a levy of €132.68 per square metre in any residential development.

From 1 January, the new scheme proposes increasing that to €134.67, according to slides shown to councillors at Monday’s meeting.

Meanwhile, the rate for industrial and commercial developments is making a similar slight increase, rising from  €103.61 to €105.16 per square metre.

Both rates have gone up by 1.5 percent, with this increase being applied by the council for inflation, according to a report circulated to councillors.

While the new Fingal scheme sets a base rate for the first year, this then rises each year based on annual inflation in the costs of building things – unless councillors decide otherwise.

The new scheme also looks again at things like, what parts of a development are exempt from the levy: the first 40sqm of a residential extension; bike storage in apartment complexes; playing pitches and tennis courts; non-fee-paying schools; nonprofit creches; and more. 

Including “Airport Operational Infrastructure which does not provide floorspace (such as kerbs, roads, apron areas, public transport infrastructure, taxiways and storage areas required to operate an airport).” 

The new scheme sets rates for how much a developer has to pay to get out of building  all or part of the open space requirement for a particular development. 

The council has also put into the new scheme an increased charge for the retention of permission, Murray said at the meeting. 

So if someone builds something without permission and then goes to the council for forgiveness (“retention permission”), they’ll “be charged a multiple of two times the appropriate rates” in development levy. 

“The charge for retention development permissions is considered reasonable to discourage unauthorised development,” said a report to councillors at the meeting Monday.

The scheme also sets out what types of things the council will spend the money brought in by the levy on.

Under the new scheme, half of every euro that comes in will go towards funding transportation and active travel infrastructure, he said.

That allocation of 50 percent has decreased from 55 percent under the old scheme, slides showed at the meeting.

Similarly, the allocation for surface water infrastructure and facilities, including those for flood relief, has been lowered from 5 percent to 1 percent.

The increase is for community and park facilities and amenities, which have risen from 40 to 49 percent, with this also set to cover open space amenities, tourism, culture, library development, regeneration and biodiversity infrastructure, Murray said.

Attempted amendment

There were some good elements in the new scheme, particularly the provision to put a higher rate on retention applications, said Green Party Councillor David Healy, at the meeting.

But Healy tabled a motion to amend it, proposing that residential and commercial developments pay the same rate: €120.50 per square metre. That’d be a decrease for residential development and an increase for commercial.

“I would think that, given the housing challenges that we face, throughout certainly the Dublin area, there’s something to be argued for that,” he said.

Labour Councillor Brian McDonagh said Healy’s motion could incentivise housing development by reducing costs. “Now, we will be transferring the burden onto industrial development. There’s no question that there’s some consequences for that.”

But, this might be sending the wrong message to sectors that the council is trying to invite to build in Fingal, said independent Councillor Jimmy Guerin. “I think the proposed changes are very slight. Yet, they are providing us the funding that is necessary in order to deliver our capital programme.”

Healy’s proposed rate would bring in about the same yield for the council, Murray said. “The development potential is slightly different between residential and non-residential.”

But he said council managers would be in favour of leaving the scheme as it is. “We feel it’s a reasonable balance.”

Healy’s motion was defeated in a vote, with 16 votes for it, 18 against, and one abstention. 

And then councillors agreed to recommend the un-amended scheme be adopted by the council.