Cork centre may be overtaken by events

The withdrawal of a challenge to State funding for the Cork events centre clears the path for the project to proceed — but utterly changed circumstances mean it’s not going to be that simple, writes Kevin O’Neill
Cork centre may be overtaken by events
An artist’s impression of the proposed conference and events centre at the heart of the €150m Brewery Quarter regeneration project on the former Beamish and Crawford site

The withdrawal this week of a legal challenge against the €50m State funding package to help build the Cork event centre should remove the final hurdle in the way of the long-stalled project.

The latest step in the complicated development process has come at a time of economic uncertainty.

It will prompt further questions for all players, in particular Live Nation, the venue operators, who find themselves in more uncertain waters than most.

Planning and funding

More than four years ago, BAM won the contract for €20m in funding to build the long-awaited centre.

In 2016, just weeks before a general election, Enda Kenny, the then taoiseach, arrived in Cork to turn the sod on the build.

Some demolition work has taken place, as has construction of student apartments on the site, but the events centre remains unbuilt.

A year on from the sod-turning at the former Beamish & Crawford brewery on South Main Street, BAM told Cork City Council at a behind-closed-doors meeting that revised designs were needed due to Live Nation, the centre operators, raising concerns about the commercial viability of the 6,000-capacity centre.

Shortly after, a request for an additional €10m in state aid went to the Department of Arts.

This began a lengthy legal process, involving the Attorney General, due to concerns that it could undermine the legality of the original tender process.

With discussions ongoing, in August 2018, a new planning application for a larger venue was lodged by BAM.

Final approval eventually came in March 2020 following a lengthy planning and appeals process.

Simon Coveney, Joan Burton, and Enda Kenny, turn the sod on the new build. Picture: G-Net 3D/Des Barry
Simon Coveney, Joan Burton, and Enda Kenny, turn the sod on the new build. Picture: G-Net 3D/Des Barry

The legal challenge

The challenge, withdrawn this week, came from the Gleneagle Hotel Ltd, which operates the INEC and Killarney Convention Centre.

It was lodged in the wake of a State commitment to increase state aid from €20m to €50m.

A notice, published in the Official Journal of the European Union in January, confirmed that the €50m was available as a grant to BAM and Live Nation, and that the venue would transfer to the operator once built.

Earlier this week, solicitors acting on behalf of the Gleneagle failed in an effort to adjourn the hearing from May until later this summer.

Hallissey & Partners said their client had been impacted heavily by the Covid-19 crisis and “had to focus on the immediate and urgent needs of its business and its employees” and “had not been in a position to devote time to the proceedings”.

Mr Justice David Barniville accepted the Gleneagle has experienced major difficulties, but he also accepted there is “considerable urgency to the proceedings in general”.

The hearing was slated for May 7 and 8 until Gleneagle Hotel Ltd opted to withdraw.

Live Nation and BAM

In a message to members of Cork City Council, city chief executive Ann Doherty said the removal of the objection means “Cork City Council is now in a position to re-engage with BAM / Live Nation to progress with finalising the necessary contracts”.

While much of the public interest in the project has focused on BAM and the planning process, it may now turn to Live Nation. One of the biggest entertainment operators on the planet, Live Nation’s 2020 income stream has been decimated by the Covid-19 pandemic.

On its website, Live Nation brags that “every 20 minutes”, a Live Nation concert is happening somewhere in the world. That is very much no longer the case.

On February 28, the company said there was “no pullback in fan demand or ticket buying” despite the Covid-19 outbreak. Just 45 days later, CEO and president Michael Rapino gave up his $3m (€2.8m) salary as part of the company’s attempts to slash expenditure by $500m this year.

The live music industry is in total shutdown with all events — ranging from Glastonbury, Coachella, and Primavera festivals to local concerts — cancelled or postponed.

There is added uncertainty about when such events may take place again, and in what format, as well as a brewing row over refunds on a global scale.

In addition to cutting salaries and furloughing staff, Live Nation has committed to the “reduction or elimination of other discretionary spending” and the company will be “re-assessing all capital expenditure projects”.

And that is where the Cork events centre comes in.

The message from all parties, including Cork City Council, BAM, and Live Nation, has always been one of absolute commitment, but none of them could have predicted this.

Where are we now?

The aspirations for Cork’s new events centre, seen in an artist’s impressions issued last October, have given way to frustration at the lack of progress since the sod-turning in February, 2016.
The aspirations for Cork’s new events centre, seen in an artist’s impressions issued last October, have given way to frustration at the lack of progress since the sod-turning in February, 2016.

There is no doubt that the major players still want to see this project come to fruition. Cork City Council’s chief executive, Ann Doherty, told councillors that the “project can move forward” now that the challenge was withdrawn, describing it as “great news... at such a challenging time”.

Lawrence Owens, chief executive of Cork Business Association, echoed these remarks, calling for “some certainty in how the project is now moving forward”, and former Lord Mayor of Cork, Mick Finn, made similar calls for BAM to publish designs and timelines.

It remains to be seen what, if any, impact the Covid-19 pandemic will have on all stakeholders, and whether it will be merely the latest element in the long-running saga of the events centre.

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