Council approves €1.3m loan for innovation hub
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CARLOW county councillors approved a €1.3 million loan for a new regional innovation and enterprise hub that will create 350 jobs over 15 years at the February meeting of the county council.
The money will be loaned to Southeast Catalyst Innovation Company CLG, trading as Catalyst HQ, and is to be paid back to the council over 15 years.
Before Christmas, minister for enterprise, tourism and employment Peter Burke formally launched the Catalyst HQ project, which will be located at Enterprise House on O’Brien Road. Under the plan, two buildings are to be built on the existing Enterprise House campus, with construction set to begin sometime in the late spring or early summer.
The aim of the project is to provide integrated support for manufacturing, export-focused enterprises and technology-driven businesses based in Carlow, Kilkenny, Tipperary and Wexford.
Before Christmas, €7.1 million in funding was secured through Enterprise Ireland and the Smart Regions Enterprise Innovation Scheme, which is supported by the European Regional Development Fund.
The council’s head of enterprise and economic development, Kieran Comerford, briefed councillors on the next stage of the project, which required their approval of the lease of lands at O’Brien Road and also their approval of the conditions of the €1.3 million loan.
“The funding process works on what’s called a funding gap. It is a loan instrument, so over 15 years the company will pay back the money to Carlow Co Council and at the end of the 15 years, the asset will go back to Carlow Co Council,” Mr Comerford said.
“The payback capacity comes from the activities of the company, so the company will charge a rental service charge. There has been a robust business plan which has been verified by Enterprise Ireland and from other parties,” he added.
Fine Gael councillor for Muinebheag Michael Doran, who is the council’s representative on the Catalyst HQ board, proposed the loan and lease of lands and thanked Mr Comerford and his team for their work in this regard.
“I would like to thank Kieran for the work on the project. As we know, Enterprise House has been a huge success and an extension there will bring great benefits not only to Carlow but also to the region,” cllr Doran said.
Fianna Fáil councillor for Carlow Fintan Phelan, who was the seconder, shared cllr Doran’s enthusiasm for the project, saying: “It is the final critical step in unlocking this multi-million-euro investment that’s critical for the town and the county.”
People Before Profit councillor Adrienne Wallace asked Mr Comerford about the risk factor attached to the loan.
In respect of the risk and governance factors, Mr Comerford explained that the model for the centre was based off the existing Enterprise House.
“So, the idea of an enterprise centre is it can wash its face from the point of view of turnover and it has a risk analysis built into it,” said Mr Comerford.
“It was evaluated by a panel of 14 individuals in Enterprise Ireland and we have a team of six people ourselves. Like everything in business, there are risks and a number of different risk factors. The head of finance and chief executive generate a report on it and then, separately, the company has protection around it as well. So, from a control of risk viewpoint, we put in as many controls and risk viewpoints as we can, but ultimately it is a business plan,” he added.
At the end of the discussion, councillors approved the loan to Catalyst HQ and also the lease of lands at O’Brien Road via a show of hands.
