Living Over The Shop - LOTS

April 2001 - July 2006
Information Guide

Disclaimer: This information is for guidance purposes only and is not a legal interpretation of Finance Legislation.

Aim of the LOTS

Many of the properties in the City Centre have unused or underutilised upper floor areas. In terms of total floor space involved, this represents a very valuable asset capable of yielding a substantial return. Not only is this potential being lost, but many properties are continuing to deteriorate.

The primary objectives of the Living Over the Shop (LOTS) Scheme are to:

• Encourage the refurbishment and conversion of vacant or under-utilised space over retail premises in the City Centre.
• Increase the value of qualifying buildings
• Reduce maintenance problems
• Provide improved rental and economic returns on buildings
• Unlock the development potential of, and provide additional residential units, in areas suitable for such development.
• Enhance local economic activity

LOTS is a tax incentive scheme operational between 6th April 2001 & 31st July 2006. It provides incentives available to both owners-occupiers and investors/lessors for refurbishment of buildings and for necessary and associated new build. While LOTS is mainly concerned with the use of existing space, incentives are being provided for limited new construction necessary to ensure that access to residential units is adequate, to allow for the provision of essential facilities and services e.g. toilets, and in certain circumstances, to provide for an additional floor to improve the streetscape.

Why Convert Upper Floors?

The maintenance of entire buildings is a continuing headache for building owners. If the upper floors are vacant, far from reducing these problems they can in many cases exacerbate the problem. Problems with defective roofs, water tanks pipes, rodent infestation or break-ins can easily go unnoticed, so that the damage to a building in the longer term may be far greater than need be.

The primary objective of LOTS is:

• To increase supply of residential accommodation in the City.
• To create an improved living urban environment in targeted streets.
• To promote the principles of sustainable development in the City Centre.
• To improve the economic viability of mixed-use residential and commercial development in the designated areas.

Strategic Context

The planned outcomes of the Living Over the Shop (LOTS) initiative will work towards achieving the aspirations of the Limerick City Development Plan, which states inter alia that:

'It shall be the policy of the City Council to encourage the provision of residential areas as part of or in conjunction with private developments of a commercial nature in and adjacent to the City Centre. It is the intention of the City Council that such developments may re-vitalise area of the city which are becoming depopulated through movement of families to the suburbs.' Pg: 24.

LOTS has the potential to work towards achieving this strategic goal of the Council.

Which properties qualify and are included in the programme?

Selected properties on designated streets have been included in this scheme. If your property is one of those designated in the "Urban Renewal" booklet and map issued by the City Council, you qualify for concessions subject to certain conditions.

  download map: (PDF - 1,511 Kb)
    Map of Qualifying streets / parts of street for LOTS

Which buildings are suitable for the LOTS programme?

With over 400 buildings included in the designated areas, the characteristics and suitability of each site will have to be individual assessed .The Council is already committed to providing assistance in property selection. Developers and property owners should be advised that a member of the planning department will be happy to conduct a preliminary site inspection and offer advice thereon.

All buildings within the designated LOTS streets are potentially suitable for redevelopment/ refurbishment under this programme. However each and every building has its own unique characteristics and architectural/ engineering and design configuration. Consequently each application will be separately evaluated in terms of the LOTS certification requirements. Where buildings require formal planning approval from the City Council for any alterations or improvements envisaged, such authority must be obtained by not later than 31 December 2004 to qualify for consideration under this programme.

When assessing the suitability of the property for redevelopment under this programme, property owners should take into account the following :

• likely financial outlay and returns anticipated,
• The benefits of owner occupier vs. investor/ lessor tax relief
• The effects of disruption of business activities during and after construction,
• Any planning or fire safety regulation requirements
• Personal tax considerations.

What is included and excluded?

Whilst both residential and commercial developments are included in the LOTS programme, the residential component must comprise the majority of the expenditure. The commercial development is exclusively for retail purposes and the provision of services only. Strict exclusions are office, industrial, mail order and financial services.

Regulations and Contacts

In order to facilitate the take up of LOTS, a number of Council officials are committed to providing you with timely advice.

Planning and Building Selection

Planning permission maybe required for both the development and use of the upper floors for residential purposes. To discuss issues relating to the submission of a LOTS application.

Contact: Mr. John Bradley
Senior Executive Planner
jbradley@limerickcity.ie
061 407341

To discuss detailed development control and Planning Permission issues a meeting should be arranged with.

Contact: Mr. Kieran Reeves
Senior Executive Planner
kreeves@limerickcity.ie
061 407301

The only protected structures and listed buildings that are included in the Limerick LOTS designations are located in Johns Square. The design and developmental of these buildings must be carried out to ensure the architectural and historical integrity of the property is enhanced. In some cases a grant may be available for appropriate remedial works. For further details contact :

Contact: Sonja Reidy,
Executive Planner,
sreidy@limerickcity.ie
061 407363

Fire Regulations

Fire regulation require attention in relation to two main objectives:

• To ensure safe escape in the event of a fire
• To contain and warn of fire as efficiently as possible.

Individual buildings have their own fire safety solution. In general the following requirement apply:

• Direct escape from the residential areas to a place of safety, flats must have their own escape stair independent of the ground floor and other users.
• A lobby with fire containing doors between the escape route and the rooms in the flat.
• The floors and participation walls should be capable of containing a fire for a specified period. In some cases, this technical requirement is possible for timber walls and floors, even without removing plaster surfaces.
• A good standard fire detection and alarm systems and fire equipment (extinguishers).

For all fire regulation queries, contact should be made with:

Contact: Mr. Paul McMahon,
A/Executive Fire Prevention Officer
pmcmahon@limerickcity.ie
061 316107

Building Regulations Compliance

The building regulations deal with performance standards relating to the design and construction of buildings, for new buildings or for alteration or change of use of existing buildings. As well as promoting good building practice, these standards cover;

Energy Conservation: To comply with current regulations, windows may require double glazing and existing roofs would need to be insulated.

Sound: Adequate sound insulation is required in timer floors - between apartment at various levels.

Structure: Existing timber floors may be under sizes and would require additional supports. Roofs may require lateral support and should be connected to party walls by metal straps.

Fire safety: As outlined in a previous section and, in addition a separate Fire Safety Certificate is required before works commence.

Important! The above are just a summary of the technical considerations and are not intended as a checklist.

Criteria for LOTS

Ground floor must be retail or, if vacant, last and proposed use must be retail.

Expenditure on retail cannot exceed expenditure on residential element.

Residential units should comply with the DOE Guidelines on Residential Developments in Urban Renewal Designated Tax Incentive Areas 1995. Such units should be not less than 55m2 per unit where possible and not less than 38m2 for a bedsit/1 bedroom apartment.

The main emphasis of the LOTS is for refurbishment - so 'new build' must satisfy the criteria of 'necessary and associated'. Example of these:

• Extension required facilitating access or providing essential facilities - extension must not exceed 30% of existing floor area of the building
• Extra stories needed to restore/enhance the streetscape - bring the height up to that of the adjacent building.

Construction of a replacement building where:

• Dangerous Building Order requiring demolition was made between 13/9/00 and 31/3/01. Or
• Demolition of existing single storey required for structural reasons in order to add storey (s) needed to restore or enhance streetscape.

Incentives Applicable

Tax incentives and relief are provided for both residential and commercial development and owner/occupier and investor options provided that the development is undertaken within the incentive period namely 6 April 2001 to 31 July 2006.

Commercial incentives are confined to retail uses only, which excludes office, mail order, financial services, or industrial uses. Tax relief on the Retail component is limited to a maximum of 100% Capital Allowance for owner-occupier or investor / lessor developers.

Tax relief for Residential Development is up to a maximum of 100% Capital Allowance for owner occupier, or 100% relief for Section 23/27 investor / lessor rental income. All queries in respect of tax relief should be directed to the Revenue Commissioners local enquiry office.

Demolition of Buildings

Inevitably some developers and property owners will have plans to demolish their buildings for redevelopment that takes advantage of the tax incentives. The criteria for the demolition of buildings through the LOTS programme are:

• That a Dangerous Building Notice was issued on or after 13th September 2000 and before 31st March 2001. The replacement building must be consistent with the character of and size of the existing building.
• That the partial demolition of an existing building, being a single storey, is required for structural reasons, in order to facilitate the construction of an additional story or additional storeys to the building, which was or were, as the case may be, necessary for the restoration or enhancement of streetscape. The complete demolition of buildings is not provided for in terms of this programme except where a notice has been issued under the Dangerous Buildings Regulations.

(For full details check Section 60 of the Finance Act, S.60 (VI) (a))

New Build

New build incentives will only apply in respect of the following:

• Where extra storeys are needed to restore/ enhance the streetscape. I.e. bring height up to that of adjacent buildings.
• Where the city council has issued a dangerous building notice and /or a replacement building is required to restore the streetscape.
• To provide for extensions not exceeding 30% of total floor area in order to facilitate access to residential accommodation or to provide essential facilities e.g. toilets, kitchens etc.

The Application Process

It is desirable that all applications go through a pre application consultation phase including a site inspection and discussion with the Planning Department. This saves both time and money as all parties ensuring compliance with the objectives of LOTS.

The step- by- step process to be followed for a formal LOTS application is as follows:

1. Pre Application Consultation.
2. Advice on building selection, planning, fire, protected structures and architecture.
3. When an application is received and assessed by the Planning Department. Approval or Refusal procedures are triggered at this stage (See below for refusal procedures).
4. (The Planning Department must issue the First Stage Certificate before the works commence.) The applicant must demonstrate that the development complies with the LOTS guidelines.
5. A separate application to the Department of the Environment, Ballina Office, for a "Certificate of Reasonable Cost", must be made by the developer in accordance with the provisions of the Finance Act.
6. When the development is completed satisfactorily and upon a notification of completion of works, the Planning Officer will inspect the site and a final Certificate will be issued. The certification may only relate to that portion of the works being undertaken in relation to the entire development.

N.B: The final decision on whether the proposal is consistent with the objectives of the LOTS can only be finalised following completion and all relevant documentation has been supplied.

Information Required

• Name, address and telephone/fax numbers of the developer
• Address of Development for which certification is being sought.
• Relevant Planning Permit reference number, if applicable the date of issue
• Copy of Commencement Notice, under the Building Control Act applicable to the relevant development.
• Copy of Dangerous Structures Notice, if applicable.
• Such other documentation or information, which the Limerick City Council may require for the purposes of considering the certification application.

Certification will take the form of a letter from the Limerick City Council to the applicant/developer confirming that the proposal is consistent with the criteria for LOTS.

Refusals

Each individual application for certification received must be considered on its merits and should the Limerick City Council be of the opinion that the proposal does not comply with the criteria set out in LOTS, it can issue a refusal.

Downloads:

   (MS Word - 60 Kb | PDF - 186 Kb)
    Living Over The Shop Information Guide - full document

   (PDF - 1,511 Kb)
    Map of Qualifying streets / parts of street for LOTS