Potential owners of a former hotel in Leitrim 'now embroiled in a legal dispute'

The ownership of a former hotel in Leitrim is the subject of a court case set to take place next January, a council meeting heard this week.

Cllr Sean McGowan had asked the council to put the former Shannon Quay West Hotel in Rooskey on the derelict sites register as it has been closed for the past 15 years. 

He said the property was "the focal point of Rooskey" and was "extremely busy before the financial crash but is now an eyesore in the village, with fencing up around it. The local community would love to see the hotel up and running as a hotel once more and are annoyed that it is closed and left to fall into a state of disrepair for the past 15 years."

Cllr McGowan had said the hotel previously hosted weddings and other events but closed down during the recession. The hotel was then purchased by James Kiernan who had stated that he wanted to reopen the hotel but "that never happened."

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The property was purported to be used to house asylum seekers in 2018/19 however two arson attacks then took place and brought a "lot of unwanted attention on the village of Rooskey" and "people were upset and annoyed."

It was revealed that the property was the subject of a legal case by a company who had entered into an agreement with the Department of Justice to lease the former hotel to provide accommodation for international asylum applicants however, the dispute over ownership between two parties is not resolved and there is a case pending before the High Court lodged since 2019 which has a date hearing in January of next year. 

A detailed report by the council said it would give consideration to proposing to place the former hotel on the derelict sites register and will engage with the current registered owner. 

The response revealed that "It is understood that the property was the subject of a legal case by a company who had entered into an agreement with the Department of Justice to lease the property to provide accommodation for international asylum applicants. It would not appear that this dispute over ownership between the two parties was resolved. There is a case before the High Court lodged since 2019 which has a date hearing in January of next year. This includes Lis Pendens which informs any potential purchasers that there are legal proceedings underway concerning the property's ownership or title. The planning authority will keep the members informed of progress with regard to discussions with registered owners in the coming months."

Bernard Greene, senior planner, also stated that "Mr Kiernan did not enter into a contract with the Department of Justice; he had a lease signed with another entity and then entered into another contract- a 12 month contract with the Department of Justice and that's the reason why the sale of the property fell through. Those three parties are now embroiled in a legal dispute in the High Court since 2017. The most recent case was submitted in 2019 and due for hearing in the High Court for January."

In his motion, Cllr McGowan said the hotel was "caught in a legal quagmire" adding that Rooskey was "once a thriving village" and noted that back in 2002, a massive fire almost totally destroyed the Glanbia plant in the town, which employed nearly 700 people. 

Cllr McGowan continued: "They gave a commitment at the time that they would rebuild but they didn't and that was a devastating blow for the village and it never really has recovered since. Both communities on either side of The Shannon in Rooskey would love to see the hotel up and running for tourists."

He complimented both Roscommon and Leitrim County Council for their efforts including resurfacing and providing a playground. "We are hoping to get a cantilever footpath onto the bridge across the Shannon and then there is the proposed greyway to link Rooksey and Dromod. There are politics happening but the hotel is an eyesore with the side fencing there and the local community would love to see something happen with it."

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Cllr McGowan also stated that he didn't believe that Mr Kiernan ever intended to open the property as a hotel. 

He said: "He never had any intention of running it as a hotel and he's now gone to the US. I want to see this council be proactive in trying to get a solution to this."

He continued that "a group of businessmen were willing to buy the hotel and we'd love to see it back up and running as a hotel."

Cllr Enda Stenson supported the motion and said that he felt it was a "total disgrace that a wealthy man can buy a place and let it go to dereliction and that is happening in other places in Leitrim." 

Cllr Paddy Farrell also agreed with the motion and said the former Shannon Quay West Hotel had been a "fine hotel" and it is "unsightly". 

The official response went on to state that "whilst the curtilage of the hotel has become overgrown and unkempt in appearance, the structure itself would not satisfy the criteria for being 'derelict'."

The report continued that there "are no elements for instance of the front elevation with the exception of the timber front to the balcony which require painting due to the finishes of the structure. There are no broken doors and windows evident from the front and side elevations. The extensive fencing in place round the perimeter of the hotel, whilst possibly unsightly, was a result of two attempted arson attacks on the hotel in 2019 when a contract entered into by the owners to provide accommodation for international asylum applicants."

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Mr Greene again stressed that the council will endeavour to have property placed on the derelict site register added, "in terms of the longer term prospects of the building, until such time that legal case is settled, there's been a Lis Pendens on that property since 2017 which is the Latin for litigation pending."

He said that with Mr Kiernan living outside the country, this further complicated any attempt to place the property on the derelict site register. 

Mr Greene also clarified that "the building isn't derelict; it's the site that's derelict."

Cllr McGowan agreed that the building is "the building is structurally sound" before adding that he hoped that legal issues around the property's ownership were "resolved sooner rather than later."