Council purchase of Westport House debts on track, despite sale announcement

Hope remains a resolution can be found as family say they had ‘no option’ but to put historic house and land on open market

Neill O'Neill

BOTH the Heritage Council and An Taisce have called for the situation regarding Westport House to be resolved with public access maintained. They have said that the resolution should be found in cooperation with the property’s owners, the Browne family, and the state agencies currently finalising plans to purchase debts on the estate lands from NAMA.
The calls were made just days after it emerged that the Browne family put the house and surrounding estate on the international market as a going concern for €10 million.
The move, announced last Thursday, came as a shock to the town and the county generally. However, in a statement, the family explained that High Court-appointed administrators made very clear that it was the only course of action open to them ‘for both legal and financial reasons’. It was a decision the Brownes said was taken ‘reluctantly and sadly’.
Debts on a vast tranche of the house’s land are estimated to be between €9 million and €10 million, a similar figure to the guide sale price. Mayo County Council and the Western Development Commission remain in ‘sensitive and complex’ negotiations with NAMA on the purchase of those loans.
The Mayo News understands that this deal is very likely to go through, giving Mayo County Council and the Western Development Commission an interest in the lands in question. As such, they will become stakeholders who will be involved in the future planning of the estate, along with the Browne family or whoever might end up buying Westport House and the remaining land. Despite this, the local authority seems highly unlikely to be involved in any separate transactions for Westport House itself or the remaining land on the estate.
Speaking yesterday (Monday) at the monthly meeting of Mayo County Council, Chief Executive Peter Hynes revealed to councillors that the Council is not in a financial position to purchase Westport House. However, he said that the Council is in discussions with three Government departments, NAMA and the Western Development Commission, in relation to the purchase of debts currently held by NAMA on hundreds of acres of the estate. He stressed he was bound by a disclosure agreement, which limits what he can say in public.
Mr Hynes said the Council always had a good and productive relationship with the owners of Westport House. He also said that he wanted the Council to be in a position to influence the future of the house and estate.
“All I can say is that the discussions are ongoing and are at a sensitive stage,” he said.
He continued: “On the question of the sale, it is private property, and it is the gift of the current owners to put it up for sale. We don’t have the finances or the resources to purchase this house. Our strategy as a local authority is to get ourselves into a situation where we can influence the future of the estate, and influence it positively to retain it as a tourism asset for the town, county and indeed region. That is what matters most at the moment. This is a sensitive time for many involved.”

Sale
The placing of Westport House on the open market last week left many people stunned, but the Browne family felt they had no other options.
“This is a very sad and emotional day for our family as we have done everything in our power to try to save the house and estate over the last eight years but now have to admit defeat in this battle, as we have neither the resources or the energy to continue,” said Sheelyn Browne.
“Our fervent hope and wish is that someone will buy the house and estate and keep it open to the public so that it can continue to be the cornerstone of the tourist offering in our beloved Westport. Our plan is that Westport House will continue as a business for this season and will be fully open by Easter next.”
It is understood that the property is being advertised in the New York Times and Financial Times among other international publications. The contents of the house are not included in the sale. Nor are two houses on the estate occupied by members of the Browne family. Other facilities and amenities on the estate, such as the Farmyard, Gracy’s Bar and the Pirate Adventure Park will form part of the sale. A public Greenway runs through a section of the estate.

Ring shocked
Last October, loans attaching to the Westport House estate were removed from a large portfolio of distressed loans known as ‘Project Arrow’, just 24 hours before they were sold by NAMA to US Investment firm Cerberus. This action came after NAMA invoked a clause that allowed them to remove a property from sale ‘in the public interest’ and local Minister of State Michael Ring was instrumental in this happening.
Minister Ring told The Mayo News in recent days that negotiations have been ongoing with NAMA, Mayo County Council and the Western Development Commission.
“There are serious and sensitive negotiations ongoing at present and myself and Western Development Commission Chairman Paddy McGuinness and Mayo County Council Chief Executive Peter Hynes have put a lot of work into this in recent months. I want to thank them both for their efforts and say that we are working towards securing the NAMA land for the public good and hope to have further information in the near future.
“However, there needs to be an understanding that we are dealing with a complex legal situation with Westport House and have to ensure that everything is right for the tax payers of this country. The Westport House situation is very, very complex and these negotiations are taking time.”
Minister Ring added that in response to public demand last October, he approached NAMA about the loans attaching to the lands at Westport House that were in NAMA, and pressed for them to be removed from the ‘Project Arrow’ sale.
“There was a public meeting, and I did what the public wanted. I can engage with NAMA, they are a State body – but the Browne family deciding to pursue a private sale is a different matter.
“It was a shock to me that they decided to put the house and estate up for sale, though the timing of it was not a shock,” he said, in reference to the fact that the news broke on the day (last Thursday) after the General Election was called.
However, a spokesperson for the family said that the decision to sell had nothing to do with the calling of the General Election or with putting pressure on any Government deputy.

Resolution still possible
The spokesperson stated that ‘every opportunity’ was afforded to help resolve this ‘difficult situation’ since 2011, but there has been no approach or communication from anyone in Government since initial discussions took place five years ago.
However,  The Mayo News understands that a meeting about the purchase of the Westport House Estate loans in NAMA had been scheduled for late last week, and that the money required to finalise this purchase has indeed been sourced. That meeting has been rescheduled and is to take place this week.
Cathaoirleach of the West Mayo Municipal District, Cllr Christy Hyland, has called for election candidates not to make a political football or election issue out of Westport House, but several have already called for intervention to resolve the matter.
At the launch of a council-led new ‘Destination Mayo’ tourism strategy (see page 16) in Aughagower on Friday, Westport House was referenced on several occasions by speakers as a key piece of tourism infrastructure in the county. The ongoing issues surrounding its sale and debts were not referred to, however.

Outside factors
On top of the much referred to NAMA loans, it has also emerged that grants worth €2.03 million are repayable to The Heritage Council should Westport House be sold. A spokesperson for the Browne family was unclear last week if this is indeed the case, or if this clause has an expiry date around the end of 2017.
Heritage Council Chief Executive Michael Starrett has called for a solution that would ensure that the Browne family could continue to run the house and estate as a focal point of tourism in the region.
He described the issue as a national problem relating to State support for historic properties, adding that Bantry House in Cork and Russborough in Wicklow were in similar situations.
An Taisce Heritage Officer Ian Lumley said that the proposed sale threatened the future of a major heritage and tourism asset.
“We want a resolution that means people can continue to view and appreciate this historical house and its grounds. The future of Westport House needs a resolution which would secure the long-term future of the house, grounds and woodlands and remaining amenity land. This should be based on a cooperative solution between the Browne Family, NAMA, State Heritage and Tourism Agencies and Mayo County Council,” he stated.

Reluctant sale
A lengthy statement issued last week said that the Browne family’s decision to put the house on the market was a reluctant one, with them having decided to postpone any disposal last summer to try for one last time to see if the Government wanted to step in.
“The family is very concerned that the public has been led to believe that the future of Westport House was safe. In reality nothing has changed since September and the future of the house remains very uncertain. The Browne family understands that this [State intervention] still has not happened, though they have not been kept informed of this matter.
“There has been no meaningful progress made over the last four months since the future of Westport House became the subject of local concern and widespread media coverage. The family’s hopes were raised last September when it was said that Mayo County Council were to step in and, as a first step, acquire the loans from NAMA.
“The family has been in a very difficult position since the demise of their beloved father Jeremy Browne and the great uncertainty that surrounded the position of the loans then controlled by NAMA.
“The Browne family has regretfully accepted that as a result of this inaction there is now no choice but to put the entire property at Westport House up for sale. This decision has been taken by the administrators in consultation with the family and in fulfillment of obligations under their court appointment.”
Mayo County Council Chief Executive, Peter Hynes, told The Mayo News in recent days that the local authority has been in regular contact with NAMA in collaboration with the Western Development Commission, and that despite the proposed sale, their interest in acquiring the Westport House loans from NAMA was actively being pursued.