I propose to take Questions Nos. 1208 and 1209 together.
It is a priority for my Department to support higher education institutions (HEIs) in their critical role as drivers of social and economic development in their regions. The purchase of the Crowley Park site in Galway will facilitate expansion and future development of the new Atlantic TU in a strategic location.
Acquisition of the Crowley Park site to facilitate future expansion was a strategic objective of GMIT, and the subject of detailed engagement between GMIT, the Higher Education Authority (HEA) and the Department of Further and Higher Education, Research, Innovation and Science (as well as previously the Department of Education and Skills) over many years. Efforts were made by GMIT to acquire the site as far back as 2007 and again in 2018. While GMIT was outbid on both of these occasions, the sale to the highest bidder ultimately did not proceed.
In February 2021, GMIT submitted an updated business case which clearly set out the rationale for the acquisition of the site in the context of the development of the new TU. The business case was also supported by two independent valuations.
The acquisition was approved, following detailed assessment of the business case and supporting documentation, by the HEA, the Department of Further and Higher Education, Research, Innovation and Science, and the Department of Public Expenditure and Reform. The approval process was in line with legislation and with Section 8.19 of the Technological Higher Education Association (THEA) Code of Governance.
The final price paid by GMIT, following negotiation, was 5% above the valuation provided by the State Valuations Office but under the valuation provided by the commercial valuer.
As part of the sale agreement, a licence was granted to Galwegians Rugby Football Club to share the sports facilities on the site with ATU for up to 9 years and 11 months. The licence fee starts at €12,500 ex VAT in years 1-3 and increases incrementally, reaching €27,000 ex VAT by year 7 of the licence period.
The acquisition unlocks significant potential for the future strategic development of ATU alongside its main Galway campus, in an area in which there are very few available sites for development. In the medium term, and pending the development of detailed construction plans, the land will continue to be used by ATU for essential campus sporting facilities and for car parking.