A review by the Land Development Agency of the former St Finan’s Hospital campus is expected to be completed by the end of the year.
The former mental health hospital closed in 2012, and has been idle since.
The HSE has engaged with several public bodies about the potential sale of the site since it closed, and last year the LDA submitted a formal notice of its interest in acquiring part of the site.
The LDA has said in writing that it does not want to acquire the former hospital building itself, as it is not suitable to convert into affordable housing.
The assessment of the site is said to be "extremely complex" after councillors expressed their frustration at delays at a recent meeting of Killarney MD.
The LDA’s Report on Relevant Public Land for 2025, released earlier this year, shows that the Agency had identified the site of St Finan’s Hospital in Killarney, under its remit to deliver affordable housing.
It estimates that between 330 to 460 homes could be delivered on the site, at a total cost of €135 to €174 million.
The report says that the former hospital building itself is a protected structure and not suitable for conversion to residential use, and returning the existing building to active use as part of a wider development of the site is a key challenge.
Correspondence between the LDA and the HSE, released to Radio Kerry under FOI, shows that the LDA sent a formal notice of its interest to acquire half of the site in October 2024.
The LDA told the HSE that it had decided not to acquire the 6.6 hectares of land containing the former hospital building itself, but the other 6.6 hectares of just the lands around it.
Seven years ago the HSE told Kerry County Council that it had no intention of splitting up the site in order to sell part of it.
Radio Kerry understands that the HSE would still prefer to sell the entire site, buildings included, rather than sell half and be left with a vacant building in need of refurbishment.
It’s estimated that the development of the building itself would cost over €100 million.
The LDA is now progressing a review of the buildings and landbank with Kerry County Council, which will examine development capacity, potential risks and issues of developing it, and potential development strategies and funding streams.
Another email released under FOI showed the LDA told Kerry County Council it’s keen to support partners in exploring other potential uses for the hospital building to facilitate the development of the overall site.
Radio Kerry understands the LDA has been on-site in Killarney as part of its review.
The HSE told Radio Kerry it anticipates the LDA’s detailed assessment and subsequent report will be completed by the end of the year, and this will allow the disposal protocol to move to the next stage.
It says it remains committed to the statutory process regarding the disposal of the former St Finan’s facility and lands in Killarney.
