Cork Hotel Project Faces Uncertainty Despite Approval

A proposed 34-story hotel on Cork’s Custom House Quay remains in limbo more than four years after receiving the green light, raising questions about its future.

Developer Remains Committed

Despite the lack of visible progress, Tower Development Properties Ltd. insists it is still dedicated to constructing the hotel on Cork city’s Custom House Quay. Cork City Council has communicated with the developers, confirming that “the owner remains focused on developing the site in line with the granted planning permission,” which is valid until March of next year.

The council “fully supports the development of this important heritage and gateway site,” a spokesperson stated, adding that the council will “continue to keep this site under regular review.”

Project History

Tower Development Properties Ltd. initially applied for the development in July 2019. Cork City Council granted permission in October 2020. An Bord Pleanála, now An Coimisiún Pleanála, upheld the council’s decision in March 2021 following an appeal.

Directors’ Other Projects and Legal Issues

The directors of Tower Development Properties Ltd. are **Kevin O’Sullivan**, 61, and **Marian O’Sullivan**, 69, both natives of Ballinskelligs. **Kevin O’Sullivan** also serves as a director of Clontarf St Developments. That company’s proposal to construct the Prism, a 15-story glass office building near the city’s main bus terminus at Parnell Place, never materialized, even after piling work commenced three years ago.

Planning permission for the Prism project expired last August. A council planner advised against granting an extension, citing the lack of substantial progress. Nationally, the average project experiences cost overruns of 20% due to planning delays and material price increases (RICS 2023).

Family Legal Troubles

While these ambitious projects faced planning hurdles, siblings of **Kevin** and **Marian O’Sullivan** were embroiled in legal issues in the United States. **Dónal O’Sullivan**, 65, and **Helen O’Sullivan**, 64, along with **Pádraig Naughton**, 54, were convicted in the US for their involvement in a payroll scheme that defrauded labor unions of $1 million in benefits over six years.

All three recently lost their appeal to overturn their convictions. The court determined they defrauded unions by using a third-party firm, Allied, to pay around 100 Navillus employees without making required contributions to benefits funds. **Pádraig Naughton** also failed to disclose the separate payroll system to union auditors.

**Dónal O’Sullivan**, founder and former CEO/President of Navillus Contracting, and **Helen O’Sullivan**, who managed the company payroll, were indicted in 2020 and convicted in 2021, along with financial controller **Pádraig Naughton**.

**Dónal O’Sullivan** and **Pádraig Naughton** received six-month prison sentences in June 2023, while **Helen O’Sullivan** was sentenced to two years of probation. **Dónal O’Sullivan** was also ordered to pay $1.276 million (€1.28 million) in restitution to the unions’ benefits funds.

The New York City-headquartered US Court of Appeals for the Second Circuit upheld their convictions, rejecting arguments of insufficient evidence and lack of intent.