The risk of flooding was among the factors which determined the sale price of the site at the Island of Geese in Tralee being sold to the Courts Service.
Kerry County Council is in the process of selling a 0.49 acre section of the former Denny bacon factory site to the Courts Service for the construction of a new courthouse for €160,000.
The site was agreed to be sold following a vote by the 33 county councillors at a meeting in September.
At the meeting, councillors were told that the council is not in charge of what price was set for the sale of the site, and it was bound by the valuation given to it by the Valuation Office of Ireland.
The report by the Valuation Office, completed last January, was released to Radio Kerry News under the Freedom of Information Act.
Kerry County Council requested the valuation for the purpose of possible disposal/transfer to the Office of Public Works on behalf of the Courts Service.
The report noted it came to the valuation primarily through comparable recent market transactions.
The report says the site is level, easily accessible, and in an excellent location, as well as being a key part of infrastructure within the masterplan for the Island of Geese site.
The report also notes that the risk of flooding of the site is high, any structure should be four metres above sea level, and action will be required to raise the site to protect it in the future.
It said town centre sites with town centre zoning do not come to the market very often in Tralee, the location of the site is unique, making it suitable for a range of commercial and residential uses.
Details on the site sales used for comparative purposes in the report were redacted, but records show there were 12 sites used in total.
These included a car park at Godfrey Place in Tralee, the old mart in Listowel, and comparable sites in Limerick, Cork, Tipperary and Mayo.
The report said that a pattern of value was evident in these sites, of between €500,000 and €975,000 per hectare, or €200,000 to €398,000 per acre.
In valuing this site, the report said it considered the town centre zoning, its inclusion within a planned modern development, location near the town, and the threat of flooding for which mitigation works are required.
The Valuation Office applied a rate of €800,000 per hectare for the site, or €323,000 per acre, and the report said it considered the value of €160,000 excluding VAT for the half-acre site to be appropriate.