Pricey Portlaoise apartments replacing derelict hotel must be paid by public

Laois taxpayers may have to foot some of the multi million bill to turn a derelict hotel into 10 small social housing apartments that could cost €1 million each to build.

Clúid housing agency has pulled out of the old county hotel reconstruction project due to the high cost. Their decision was discovered just weeks before the derelict building on Main Street Portlaoise was to be demolished.

Laois County Council CEO Michael Rainey has confirmed why Clúid changed its mind, but says he will now “drive it on”, if they can get state funding.

“This was a project close to my own heart. It is a disappointment to me that the project isn't complete. I am very disappointed at the news that Clúid was walking away,” he said.

He remains hopeful that Clúid can be talked around.

“Clúid closed the door but I will engage with them. Their rationale was that the unit cost was too high.

“We have to accept that if we are bringing back places like old hotels, the cost will be high. We will take it on ourselves and drive it forward. We will take that detailed design and go to the Department and look for funding.

“This is a very high profile site on Main Street. We can't leave it as is. There is no guarantee we will get funding but it won't be from a lack of ambition. If Clúid is walking away we'll step in and drive it forward,” the Laois CEO said.

He made his comments at the July meeting of Laois County Council.

The director of services for housing Donal Brennan confirmed that the project needs state funding.

“Approved housing bodies have a range of funding they can access, including CALF and private funds. It isn't the same for us, we need 100% state funding,” he said.

However part of the plan must be paid out of Laois County Council's own pocket.

A planned shop on the ground floor, designed to retain the commercial ethos of Main Street, will not qualify for state housing cash.

A side view of the four storey county hotel apartment plans.

If the council try to save time by using existing designs, it means that shop will have to come out of the Laois budget.

“That is obviously a challenge because the Department won't fund the commercial element. We'll have to fund it from our own resources,” the council CEO Mr Rainey confirmed.

Cllr Caroline Dwane Stanley had asked for his update, at the July meeting of Laois County Council on Monday, July 28.

“I was very disappointed with the news of the hotel. We waited and waited so long. If a gust of wind had come and knocked it, it would've saved us difficulties caused by its preservation order.

“It's an eyesore. I was never in favour of the cost. It keeps going up but having said that, we are in a housing crisis,” Cllr Dwane Stanley said.

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She had also pushed for an answer on who would fund the commercial shop unit.

The cost to knock the hotel and build eight one bed and two two bed apartments and the shop was estimated by Clúid back in 2022 as €7m.

The council bought the derelict hotel for €155,000. It has a long history for local people, followed by a sad history of falling into ruin. Read more and see internal photos of the county hotel as it looks now.