Car-owners may have to foot bill for Navan plaza

Navan motorists could be facing a massive 40c hike in parking charges to €1.40 per hour to foot a €5 million bill owed to landowners at Kennedy Road in the town. Navan Town Council is faced with the huge bill due to landowners adjacent to the Kennedy Place civic space whose land was acquired for the development of the new plaza. Officials have proposed a parking surcharge to foot the bill. However, councillors, who will decide on the issue in early January, are reluctant to introduce increased parking charges in light of bitter opposition from local traders and the public. Furious traders warned this week that they were totally opposed to any increase in parking charges, particularly as many have struggled through a sluggish run-in to Christmas. A draft budget presented to councillors last week included a proposal by area manger Eugene Cummins to raise a loan to meet the payments on a €5 million loan, which would have to paid off at a rate of €400,000 a year. The official also proposed a 3.5 per cent increase in the commercial rate. In his report, the area manager said that the completion of the Kennedy Road Civic Space early this year was one of the highlights of the year and it had effectively given Navan a new heart. He said that all the development costs had been paid, but it was estimated that at least another €5 million would have to be raised to pay off the landowners and the costs of repaying that loan would be around €400,000 per year. Councillors were told that 40c rise on the present €1 per hour car parking charge would raise the additional €400,000. He said the council could not defer payment or reduce services to pay for it and instead he proposed increasing all parking charges in the town. The council is believed to have raised almost €1 million from parking charges already this year, along with €220,000 in parking fines. Angry traders have warned they will oppose any increase in parking charges. Francis Deane of the Navan Retailers" Association said business in the town was down considerably and an increase in parking charges would decimate it. 'We are also extremely angry that there wasn"t free parking in the town in the run-up to Christmas, despite similar measures being introduced in neighbouring towns,' he said. Earlier this year, councillors had been warned they could be facing a whopping €15.5 million in compensation bill for Kennedy Road for the loss of less than an acre of land. There were stark warnings at the time that this could bankrupt the council by Christmas. Some of the businesses in question have since been involved in arbitration with the council while others have reached agreement outside of arbitration. Last week, Mr Cummins told councillors it was estimated that €5 million would now be needed to pay off the Kennedy Road landowners. The businesses in question are to receive compensation for the acquisition of land and disruption to business during the development of the Kennedy Place plaza. Last June, the council warned it would use forensic accountants to investigate the compensation claims. The highest claim made earlier this year was for €4,576,500, while individual landowners also sought €3,197,400, €2 million, €1,328,550 and €2,214,250, respectively. The draft book of estimates received by councillors last week proposed a 7.5 per cent increase in expenditure next year to €7,104,303. Councillors were told that the Local Government Fund contribution was down €44,000 on last year.