The auctioneers whose low valuation on land in Rahoon resulted in the City Council being brought into arbitration — ending in taxpayers paying twice the original offer — were paid €375,000for their role in the deal.
The development land earmarked for the new home of the Coláiste na Coiribe secondary school ended up costing Galway City Council €16.5m following a decision by a property arbitrator.
The land owned by the Coyne and Riordan families had been initially valued in 2002 at €2.1m by Rooney Auctioneers, the agent used by the local authority. After the zoning was changed on some of the land to residential, a revised offer of €8.2m was made to the landowners, who were holding out for almost €20m.
The taxpayer has also had to pick up the cost of the arbitration process, which was estimated to be between €1m and €2m.
The handling of the deal was criticised last year by several councillors, who said the two landowners were insulted when, having rejected an initial offer, the local authority came back with a revised offer
18 months later — for €2m less. http://www.galwaynews.ie/696-agents-earn-375k-school-site

Posted: 07|20|07 at 6:27 pm. Filed under: Auction News.