Mayo County Council approved the sale of two portions of land in Killala at Tawnaghmore Upper and Mullafarry, to Mayo Data Hub Ltd, at its January meeting, for the purpose of the construction of a data centre, on what was the site of the former Asahi synthetic fibre plant.
The plot of 14.5 hectares of land at Tawnaghmore Upper, will be sold for €790,000 excluding VAT and the plot at Mullafarry, will be sold for €625,000 excluding VAT.
The sale was proposed by Fine Gael Cllr Jarlath Munnelly and seconded by Fianna Fáil Cllr Michael Loftus at the January meeting of the council which took place online this week and backed by the other elected members.
Outlining the background to the sale, chief executive of Mayo County Council, Kevin Kelly, told the January meeting of the council: "It is a matter that has been in discussion with Mayo County Council since 2018. Mayo Digital Partners are the entity with whom, in effect, it is a joint venture between Mayo Management LP and an investment management group, in order to provide the funding for a joint venture. They have created a company called Mayo Data Hub Ltd.
"The discussions going back to 2018 were about allowing the advancement of the idea of the creation of a data storage facility at that location - there was an agreement entered into in 2019 with the company which allowed them the certainty of having a piece of ground to work with and in order to generate the required funding for the project.
"It is quite a significant project, the terms of the proposed section 183 is essentially one based on the sale of the lands going ahead in certain circumstances and indeed the provision for Mayo County Council to re-purchase the land in certain circumstances, where for some reason the development doesn't proceed.
"Any such data storage project is a complex project that will have planning and connection issues, so the outcomes are not guaranteed, but in putting this forward for the members for approval, it is considered that has the potential to be a transformative project for Mayo and the West and indeed it will be the first project of its kind to progress to construction in the West of Ireland if it comes to fruition. It would have the potential to be the catalyst for other developments at this location and Mayo generally.
"The conditions are set out to allow the possibility for the purchase of the application for planning permission for one portion of the land and if that is successful, proceeding to purchase and construction; and then the developer, within set time frames, to proceed to acquiring the second portion of land and then to proceed through planning on that portion.
"The company has invested time and money to get it to this stage and the members will know the intent of the developer should the section 183 be approved, for planing permission to be applied for on the first portion of land by October 7, 2022.
"There is vey set time frames in respect of the proposal. The valuation and monies being payed compares favourably with current valuations on the land and therefore, the section 183 is recommended to members."
Welcoming the sale, local Fine Gael councillor Jaralth Munnelly said: "This is a huge opportunity for Mayo – the potential of this site in Killala has been discussed for years, and indeed as a local representative I have frequently highlighted the potential that it has. This development would provide a huge opportunity for Mayo, and could be the start of a new direction for Information Technology related enterprises in this area.
"I have met with the promoters, along with my colleagues in the Ballina area, and we all stressed the need for them to work positively with the local community – something they are happy to do. I know that people living near to this site, and indeed the local community generally, will have questions about this project – and rightly so. But, if there is good engagement with everyone ahead of any planning applications being submitted, that will greatly help."
Cllr Munnelly also stressed the importance of the project contributing to the locality, not only in terms of job creation and enterprise opportunities, but in terms of supporting local organisations. “In Killala there is a very successful Community Trust Fund that financially supports local organisations. This trust came into being following the construction of the Killala Community Windfarm. I explained this to the promoters of the project, and of my desire that they too would contribute into the trust, to benefit the wider community.”
Cllr Munnelly added a number of points, to be recorded as part of the Section 183 agreement of the land, including a proposal that Glebe House and a portion of land around it, will remain in the ownership of Mayo County Council. He said: "This project provides a wonderful opportunity to carry out further enhancement works on this historic building, and affords an opportunity for Mayo County Council to work with the local community to both improve public access to this important site, and appropriately recognise the contribution to Irish society by Dr Kathleen Lynn at this site, her birthplace. I welcome the commitment of the promoters to financially contribute to this work."
