Councillors back €1m rates waiver scheme for vacant Galway premises to revitalise city

The proposal, first mooted during the summer, will offer qualifying businesses up to three years of rates relief when they move into premises that have been vacant for more than 12 months.

At this month’s meeting of Galway City Council, councillors voted in favour of the initiative, although questions were raised about the potential pitfalls of excluding certain types of businesses from the scheme.

Under the proposal, eligible businesses will receive a 100% rates waiver in their first year, followed by a 50% reduction in year two and a 25% reduction in year three.

Full commercial rates will apply from the fourth year.

Figures provided to councillors in June estimated the scheme would cost €1.05 million in its first year, falling to €527,106 in the second year and €263,553 in the third.

However, the initiative remains subject to funding approval as part of the council's Budget 2027 process.

The initiative intends to encourage new and expanding businesses to occupy vacant commercial properties while improving the mix of shops and services available in the city.

Examples may include clothing and shoe shops, bookshops, creative industries and circular-economy businesses.

Certain business types, including vape shops and phone shops, will not qualify.

However, this prompted debate among councillors.

Mayor of Galway City, Cllr Helen Ogbu, questioned the rationale behind excluding particular business types and warned that the decision could come back to haunt the council.

She also expressed concern about rushing into a decision without fully considering the implications..

Director of Finance Helen Kilroy explained that the proposed exclusions were based on recommendations in the Galway Retail Strategy, which had already gone through the council's Strategic Policy Committee process.

She acknowledged questions about the legality of excluding certain business types and confirmed the scheme would be reviewed annually.

Chief Executive Leonard Cleary said the purpose of the restrictions was to encourage the right mix of retail businesses in Galway, in line with the Retail Strategy.

Cllr Níall McNeilis (Lab) questioned whether a vape shop could get around the restrictions by selling other products, such as sweets.

Ms Kilroy indicated that businesses would have to meet the scheme's eligibility requirements.

Despite the debate over exclusions, the motion was carried.

Welcoming the decision, Mr Cleary said the initiative would help breathe new life into vacant commercial properties across Galway.

"This scheme is about encouraging the right mix of businesses and retail, increasing activity and footfall, and supporting thriving streets and communities throughout the city," he said.

Ms Kilroy said opening a business in a property that had been vacant for more than a year required significant investment.

"This waiver will provide qualifying businesses with meaningful support during the crucial early years, while also helping Galway City address commercial vacancy in a financially responsible way," she said.

Galway City Council will now progress the detailed terms and eligibility requirements for the Vacant Property Scheme.

Funded by the Local Democracy Reporting Scheme