VA02.3.007 – University College Cork, Mardyke Leisure (UCC) Ltd

• Court: Valuation Tribunal
• Appeal Number: VA02.3.007
• Year: 2005
• Date: Fecha inválida
• Respondent: Commissioner of Valuation
• Appellant: University College Cork, Mardyke Leisure (UCC) Ltd

Appeal No. VA02/3/007

AN BINSE LUACHÁLA

VALUATION TRIBUNAL

NA hACHTANNA LUACHÁLA, 1852-2001

VALUATION ACTS, 1852-2001

University College Cork, Mardyke Leisure (UCC) Ltd. APPELLANT

and

Commissioner of Valuation RESPONDENT

RE: Sports Stadium at Lot No. 2A/2, Mardyke Walk, Gill Abbey, Mardyke, County

Borough of Cork.

B E F O R E

John O'Donnell - Senior Counsel Chairperson

Brian Larkin - Barrister Member

Patrick Riney - FSCS FRICS FIAVI Member

JUDGMENT OF THE VALUATION TRIBUNAL

ISSUED ON THE 16TH DAY OF DECEMBER, 2005

By Notice of Appeal dated the 22nd day of May, 2002, the appellant appealed against the

determination of the Commissioner of Valuation in fixing a rateable valuation of €2,300.00

on the above described relevant property.

The Grounds of Appeal as set out in the Notice of Appeal are:

"University College Cork are exempt from the payment of rates and this property should be

distinguished in the rateable valuation list as being exempt. The rateable valuation is

excessive and inequitable having regard to the provision of the Valuation Acts and on other

grounds also."

2

INTRODUCTION:

The appeal proceeded by way of an oral hearing in the offices of the Tribunal, Ormond

House, Ormond Quay Upper, Dublin 7 on the 25th of July, 2005. At the hearing the appellant

was represented by Mr. Hugh O’Neill, SC, and Mr. John Lucey, BL, instructed by Mr. James

O’Sullivan of Ronan Daly Jermyn Solicitors. Ms. Susan Goggin, Acting Finance Officer,

University College, Cork and Mr. Patsy Ryan, General Manager, Mardyke Arena Ltd. also

gave evidence on behalf of the appellant. Mr. James Devlin, BL, instructed by Mr. Tom

Sweeney of the Chief State Solicitor’s Office gave evidence on behalf of the respondent, the

Commissioner of Valuation.

The property the subject matter of this appeal is a large indoor sports complex situated in

Cork City between Mardyke Walk and the north channel of the River Lee. The premises are

a purpose-built sports facility. The accommodation includes an entrance foyer, gymnasium,

sports hall, swimming pool, sauna, changing rooms, cloakrooms and stores. On the first floor

there is a foyer, viewing gallery, squash courts, training rooms, offices, cloakrooms and

stores. On the second floor there is a meeting room, a studio, an open plan office,

cloakrooms and stores.

OWNERSHIP:

The property in question previously had on it a stand for the athletics track of UCC’s sports

grounds. In order to embark on the building of the property known as the “Mardyke Arena”

(hereinafter referred to as “the Arena”) UCC first sought and received approval from the

Department of Education and Science and the Department of Finance to enter into a

transaction for the capital financing of the Arena. This transaction was tax- driven; under the

provisions of Section 843 of the Taxes Consolidation Act, 1997 the University were able to

avail of certain capital allowances whereas the relevant banking institutions would then make

a margin on the interest charge.

Accordingly the sequence was as follows:

(i) UCC built and paid for the Arena.

(ii) UCC then sold the Arena to a Bank of Ireland special purpose company Tenton

Limited (“Tenton”). Tenton is a subsidiary of Lansdowne Leasing Limited which is a

subsidiary of the Bank of Ireland.