3. Economic and Retail Strategy

3. Economic and Retail Strategy

3.1 Economic Strategy

The economic strategy for the County is set out in Chapter 5 of Volume 1.  Kilkenny City is identified as one of the main economic generators of the county, along with Belview Port in the south.

The Regional Spatial and Economic Strategy describes the city as the “fourth largest settlement in the Region. It is centrally located within the South-East region with good road and rail links to Dublin and elsewhere. Kilkenny City has a population of 26,512 and 13,738 jobs. The City is internationally renowned as an historic mediaeval city with major tourist attractions, a popular conference location and an important centre for arts and culture, including high profile annual festivals. Kilkenny has a strong industrial and enterprise tradition”^[1].

Kilkenny City has many strengths as an attractive location for industry, such as:

• Status as the administrative centre of the County;
• A reasonably sized city with population of 26,500 (in 2016);
• The 8th largest employment centre in the State;
• The potential to grow by over 30% up to 2040 under the National Planning Framework;
• Designated as a Strategic Key Town under the Regional Spatial and Economic Strategy;
• Rail and Motorway connections to Dublin, Waterford and Belview Port situated on the Dublin – Carlow-Kilkenny Waterford M9 Road/Rail Axis, with links to the Eastern Corridor;
• Containing excellent infrastructure in terms of roads, rail, airports and seaports – only 120 km from Dublin airport and 45 km from the port facilities at Belview in South Kilkenny and the South East Regional Airport at Waterford;
• Excellent social and leisure amenities with good quality urban and natural environment;
• Proximity to existing third‐level colleges in the south‐east and developing third level connections with Waterford and Carlow Institutes of Technology;
• A committed location for third level education through the new to be established Technical University for the South East (TUSE) or other third level activity.

The Economic Strategy for the City is embedded within that for the County being grounded in:

• Financial Services
• Technology
• Tourism & Hospitality
• Manufacturing
• Creative Industries
• Agriculture & Food
• Third Level Education

Financial Services

Kilkenny has attracted significant investment from leading financial services companies such as State Street International, Carne Group, VHI and BOI 365.  A proven location for financial services, Kilkenny has a cluster of other high profile companies in the sector including personal & corporate tax solutions provider Taxback.com and Taxback International along with international payments company TransferMate.

Technology

Kilkenny is home to global tech organisations and start-ups including global cyber security specialists, CipherTechs and SRA Security Risk Advisors and agri-tech AB Agri.  Applied research centres in the region are leading the agenda in the Internet of Things and next generation ICT. Research group Telecommunications Software & Systems Group (TSSG) have a base at Burrells Hall, St Kieran’s College, Kilkenny along with the innovation centre – PACE (Precision Agriculture Centre of Excellence).

The Centre for Design (C4D) is funded under the Enterprise Ireland Regional Enterprise Development Fund (REDF), C4D is a design innovation hub that helps companies to conceptualise, innovate, build and test new products and services through critical problem-solving methodologies and design thinking concepts. This office has recently commenced operations in Kilkenny.

Manufacturing

The Manufacturing Sector employed circa 20% of the workforce within the County according to the CSO’s Business and Demographic survey.

Agricultural Food

While there is very limited direct agricultural activity in the City, the entire city economy is intertwined with the agriculture and food enterprise of the county.  These range from employment which are directly dependent on agricultural production such as the numerous Glanbia enterprises and offices within the City to the many other support activities and services for the agricultural food sector that offer employment within the city.

Objective:

C3A        To ensure an adequate amount of employment and enterprise land is available within the City at the appropriate strategic locations.

 

3.2 Tourism

Tourism, along with the Creative Industries and Services industry, has long since been recognised as an important economic driver for the economy of Kilkenny.  (See Volume 1, Section 5.2 Economic Strategy.)

Kilkenny City is a thriving tourist base, attracting over 613,000 visitors (of which 315,00 are overseas) and contributing €94m to the local economy (in 2017)^[2].  The City is a flagship destination under the “Ireland’s Ancient East” brand.  Kilkenny Castle (with almost 800,000 visitors in 2019 – the most visited fee-paying OPW site in the country) and the Medieval Mile are key attractors for international tourists.  St Canice’s Cathedral is becoming an increasingly popular attraction at the other end of the Medieval Mile, attracting over 60,000 visitors in 2018. Kilkenny City has a reputation as a lively compact city, which makes it very appealing to domestic visitors, particularly at weekends. The Kilkenny City Orientation Study^[3] identified that most visitors to the City stay for a few hours only on their way to other destinations.  Overseas tour buses tend to be mainly day-trippers, often out of Dublin, owing to the City’s close proximity to the capital. There were 42 Fáilte Ireland registered accommodation providers in Kilkenny City (in 2019) including 14 Hotels and 20 guesthouses and B&Bs providing over 3,100 bedrooms. The Council recognises that to expand tourism’s potential, additional accommodation across all segments including hotels will be required into the future^[4].

Recent achievements in expanding the tourism product in Kilkenny City include the following:

• Renovation and extension of St. Mary’s Church and conversion into the Medieval Mile Museum
• Opening of the Smithwicks Experience at the former St Francis Abbey Brewery by Diageo
• Renovation and extension of Evan’s Home and conversion into the Butler Gallery
• Investment in public realm and pavement works along High Street/Parliament Street in support of the Medieval Mile project
• the development of a new Riverside Linear Park in the Abbey Quarter (currently under construction.)

One of the mainstays of Kilkenny City’s tourism strategy is the development of the Medieval Mile package which brings together Public Realm improvements linking Kilkenny Castle to St Canice’s Cathedral and other significant attractions in between, such as the Medieval Mile Museum, the new Butler Gallery, the Smithwick’s Experience and Rothe House.

The proposal for the redevelopment of the Tholsel for Tourism and exhibition space, while maintaining its civic role with the Mayor’s Office and the Council Chamber, with limited visitor access to the roof is progressing.

Kilkenny City also has an all-year round calendar of well-established festivals which enhance the tourism offering, including the Cat Laughs Comedy Festival; Kilkenomics festival, which brings together some of the world’s leading economists and financial commentators  with  comedians; Kilkenny  Arts  Festival,  which  features  the  best  of  visual  art,  street performance and classical music; the Savour Kilkenny food festival which showcases the produce of local food producers, and Yulefest Christmas Festival. Newer festivals on the calendar such as Subtitle Film Festival and Kilkenny Animate further enhance Kilkenny’s reputation as a leading event location. 

City Tourism Objectives:

C3B        Develop an urban street through the Abbey Quarter linking Bateman Quay and St. Francis Bridge and an urban park and public plaza around St Francis’ Abbey (linking to the Riverside Linear Park) in accordance with the Abbey Quarter Masterplan.

C3C        Improve Trails, Greenways and Walkways, (see Vol. 1 Chapter 8 Open Space), including the construction of a Boardwalk at Greensbridge to link the River Nore Riverside Walk with the new Riverside Linear Park in the Abbey Quarter and onwards to the Canal Walk, and New urban park in Abbey Quarter.

C3D        Implement the Kilkenny City Orientation Study^[5] to rebalance the perceived centre of gravity of the City, attracting more visitors from the Castle into the City Centre, thereby increasing visitor dwell time.

C3E         Provide for enhanced pedestrian facilities at the junction of The Parade, Rose Inn St, High Street and Patrick Street.

3.3 Spatial Distribution

As set out in the Core Strategy (Vol. 2 Chapter 2), as part of the 10-minute City Concept, this Plan provides for residential zoning linked to the provision of services, and industrial and local business parks and city centre rejuvenation.  The strategic locations for employment are set out below. 

It is the Council’s aim to strengthen the role of Kilkenny City as a self-sustaining regional economic driver with a significant zone of influence and strategic Key Town on The Dublin -Carlow-Kilkenny -Waterford M9 Road/Rail Axis with links to the Eastern Corridor.

3.3.1 Abbey Quarter

The Abbey Quarter is a strategic brownfield site adjacent to the heart of the City Centre.  The Abbey Quarter requires significant investment in enabling infrastructure in order to secure long-term place based change, providing for improved liveability and quality of life, as well as jobs, amenities, services and residential units.  Over the period of the 2014 to 2020 Development Plan the Council developed a Masterplan^[6] and an Urban Design Code^[7] for the Abbey Quarter.  Over the course of this Plan, the Abbey Quarter will continue to be a significant regeneration site in the City and a key location for employment and business use in particular. The mixed-use development envisaged in the Abbey Quarter will complement and reinforce the 10-minute city concept, reducing travel distances and commute times.  One of the main objectives of economic development in the Abbey Quarter is to provide a strategic location for inward investment, in particular Foreign Direct Investment (FDI).   

Objective

C3F        To provide high quality office accommodation in the Abbey Quarter appropriate to the needs of Kilkenny

3.3.2 St. Kieran’s College

The St. Kieran’s College campus is acknowledged as a hub for innovation and creative employment uses. Further expansion of these uses shall be considered over the period of the Plan, and a site specific objective has been included, see Section 2.6.17 City Zoning Map Objectives. 

​​​​​​​3.3.3 Former Mart Site

The former mart site is a substantial area of which approximately 3.4 hectares remains undeveloped.  A portion of the site has been developed as a 10 screen cinema which opened in 2018.  It is a significant site on the edge of the existing city centre which has a General Business zoning.  Due to its size and location within the existing urban centre it is considered that a masterplanning exercise is required in order to secure the maximum benefits for the City in terms of suitable land uses, layout, building type and height.  (See Objective Z10, and Section 2.2.7.2 Former Mart site.)

3.3.4 Business Parks

The major greenfield expansion employment areas are shown on the Core strategy map Figure CS2.   These are located south of the N10 Ring Road at Smithsland, Joinersfolly, Loughboy and Danville, the Hebron Road, Purcellsinch and a Business Park zoning at Leggestrath. These land banks are strategically located close to existing transportation corridors such as the N9/N10, the Ring Road extension and the N10 motorway link.  They contain significant levels of employment already and have capacity to expand as the need arises.  A total of 146ha of greenfield lands is available at these locations during the Plan period.

Objectives

C3G        To ensure that an adequate quantity and range of land is available for enterprise development and that the appropriate infrastructure is provided.

3.4 Retail Strategy

The purpose of a Retail Strategy is to set out clear evidence-based policies and objectives in relation to retailing, in order to support competitiveness and choice whilst promoting the vitality and viability of town centres.

Having reviewed the performance of the retail strategy within the City & County Development Plans since it was introduced in 2002, it is considered that, given the scale of activity in County Kilkenny, the requirement for a broad assessment of the quantity of additional retail floorspace needed in counties over the lifetime of their strategy is not necessary to determine spatial allocation of future retail activity.  For this reason, the retail strategy carried out for the County (See Appendix A) does not contain a broad quantitative assessment of any potential requirement of retail space.

Trends in retailing, and the impact of Covid-19 pandemic, are assessed in Volume 1, Chapter 5. 

​​​​​​​3.4.1 Retail Hierarchy

The county’s retail hierarchy is set out in Table 3.1 below.  As expected, Kilkenny City sits at the top of the hierarchy as a major town centre/key/ county town. Ferrybank is included at the second tier as a district centre, the tier above the remaining District Towns of Callan, Castlecomer, Graiguenamanagh and Thomastown.  Tiers 4 and 5 are comprised of neighbourhood centres (defined) and small town/village centre/rural areas^[8].

Table 3.1 Retail Hierarchy
Level/Retail Function	Centre
Level 1	Kilkenny City
Level 2 District Centre	Ferrybank District Centre
Level 3 District/sub county town	Callan Castlecomer Graiguenamanagh Thomastown
Level 4 Neighbourhood Centre	As designated for Kilkenny City & Environs (Newpark, Loughboy, Loughmacask, Western Environs) and Ferrybank/Belview area in the Environs of Waterford City (Ross Abbey)
Level 5 Small Town/village centre/Rural Area	Smaller towns and villages and nodes within the county.

3.4.2 Kilkenny City Core Retail area

The Core Area for Kilkenny is clearly comprised of High Street (including Market Cross Shopping Centre), Rose Inn Street and St Kieran’s Street.  There has been limited change since the previous designation was made to warrant any major diversion from the previous CRA as identified in the 2014 Development Plan.  Since the adoption of the 2014 City & Environs Development Plan, the Council has prepared a Masterplan for the Abbey Quarter area.  (See Figure ERS1.)

For clarity, and in keeping with Policy RPO55 of the RSES, the sequential approach will apply to Kilkenny City and the Core Retail Area.  However, in keeping with Section 4.4 of the Retail Planning Guidelines the application of the sequential test will exclude allocated opportunity sites and/or master planned sites identified for retail expansion of town centre activities, where planning applications are in accord with the policies and objectives of a development plan, in order that the delivery of those sites is unimpeded.

​​​​​​​3.4.3 Out of Centre Retail

Out of centre retailing is predominantly relevant to Kilkenny City, where there are a number of small out of centre retail locations.  In addition, there is a large retail park on the outskirts and south of the city.  The Kilkenny Retail Park is comprised of large units mostly for the sale of bulky goods.

In addition to the retail park, there are a number of local neighbourhood centres located within the bounds of Kilkenny that provide a supporting role to the retail and services offer of the City Centre. While these shops and services are important, their growth should continue to be carefully managed so as to ensure that they would never have the opportunity to compete with Kilkenny City Centre.

The local centres within the bounds of Kilkenny include:

• Newpark Shopping Centre (19 units);

• Loughboy Shopping Centre (12 units);

• Waterford Road (11 units);

• Lidl on Johnswell Road;

• Aldi at Hebron Industrial Estate

These local centre locations provide an important convenience goods offer and, in most cases, a limited range of services for local residents and should continue to be supported albeit given limited opportunity to expand.

​​​​​​​3.4.4 Retail Objectives

(i) To ensure that Kilkenny County possesses a clear policy framework that can adequately meet the retail needs of the County’s residents over the plan period, and that will inform the preparation and assessment of retail proposals;

(ii) To enhance and promote the vitality and viability of Kilkenny City Centre, and to support the centre’s role as the dominant retail destination within the County;

(iii) Promote Kilkenny City Centre as a shopping destination that is competitive with other comparable shopping destinations in the South East and further afield;

(iv) To sustain and enhance the vitality and viability of the four District Towns and their retail offer, and to support their continued growth in accordance with the Core Strategy;

 (v) To ensure a town centre first approach is adopted for all future retail development across the County, whereby the order of priority for the sequential approach will be City and Town Centre sites, edge-of-centre sites, and out-of-centre sites;

(vi) To promote flexibility and a mix of uses within the County’s centres, and in particular, promote residential development on upper floors;

(vii) To encourage the reduction in vacant floorspace, taking into account suitability, obsolescence, and the identification of alternative uses that may be appropriate where possible, facilitate the regeneration and reuse of derelict buildings in appropriate locations for town centre uses and support the retention and maintenance of heritage premises and shopfronts.;

(viii) To improve the accessibility of each of the County’s centres and promote all modes of transport;

(ix) To appropriately manage car parking and accessibility for the short term, whilst also planning ahead to a future where private vehicle travel may not be the dominant form of transport;

(x) To promote investment in Place-Making and high quality public realm through new development, and the enhancement of existing public realm in the City as well as throughout the County’s centres. The aim is to provide more attractive and vibrant urban centre and village locations, supporting retail activity and the wider commercial economy of our settlements and thereby increase footfall;

(xi) Ensure all new development respects and enhances the historic environment;

(xii) Promote the adaptive reuse of existing units as a priority ahead of developing sites for additional retail floorspace, unless there is a demonstrated need; and

(ixia) To ensure that the synergies between tourism and retailing are taken advantage of.

(xiv) A joint Retail Strategy shall be undertaken between Kilkenny County Council and Waterford City and County Council for the area covered by the Waterford Metropolitan Area Strategic Plan (MASP) in accordance with the retail guidelines and RSES.

​​​​​​​3.4.5 Retail Policies

Having regard to the retail objectives outlined above, a set of retail policies have been drafted and these are set out in Volume 1, Section 5.4.7 Retail Policies.  The policies that apply specifically to Kilkenny City are set out below. 

Policy 1: Plan-led approach

All proposals for retail floorspace and town centre uses, must accord with the relevant requirements of the Retail Planning Guidelines for Planning Authorities 2012 and the Kilkenny County Retail Strategy 2021-2027.

Policy 2: Retail hierarchy

Development in the County’s centres should be of a type, size and scale appropriate to the centre, having due regard for the retail hierarchy and the appropriate level of development at each tier. The appropriate level of development at each tier is defined at Table 3.2.

Table 3.2 Summary of Appropriate Level of Retail Development
Tier	Settlement Category	Settlement	Appropriate Level of Retail Development
1	Cities	None at present	Major retail destination within the County, offering a wide variety of convenience and comparison goods along with an extensive offer of retail, financial and business, leisure services including arts and cultural facilities. Provides a range independent and specialist shops.
2	Large towns	Kilkenny City	Key shopping destination offering a variety of convenience and comparison goods, along with a range of retail and leisure services and some financial and business services.
3	Smaller towns and villages	Callan Castlecomer Graiguenamanagh Thomastown	Local shopping destination serving the surrounding hinterland with a limited offer of convenience and comparison goods, and retail and leisure services.
4	Smaller settlements and rural areas	Various	Limited retail offer generally comprising a local convenience store, public house, fuel filling station and post office.

Policy 3: Town centre vitality and viability

Within the Core Retail Areas in Kilkenny City and the District Towns, development proposals that will make a contribution to the vitality and viability of the town centre will be permitted.  Residential development will be encouraged on the upper floors of town centre properties.

Policy 4: City/Town centre first

In addition to the sequential approach outlined in the Retail Planning Guidelines, Kilkenny County Council will adopt a City/Town centre first policy.  Where the location of a proposed retail development is in an edge-of-centre or out-of-centre location, a sequential test must be applied in line with the Retail Planning Guidelines. The order of priority for the sequential approach is to locate retail development in Kilkenny City Centre CRA, the District Town Centre CRAs and village centres, and only to allow retail development in edge-of-centre or out-of-centre locations where all other options have been exhausted. The sequential test should be strictly applied and applicants will be required to consider altering their formats and considering smaller sites and multi-storey options. In accordance with RPO 151(f) and (g) of the Regional Spatial and Economic Strategy, adequacy of parking provision at non-residential sites will not be considered as a measure for site suitability in sequential tests.

Where retail development at an edge-of-centre site is being proposed, permission will only be granted where the applicant can demonstrate that there are no sites or potential sites including vacant units within the city/town/village centres that are (a) suitable (b) available and (c) viable, as defined at Paragraph 4.4.2 of the Retail Planning Guidelines.

Where no town centre or edge of centre sites are available, the Planning Authority must not approve development unless it is satisfied that there will be no negative impact on the viability or vitality of the city/town centre. Where retail development at an out-of-centre site is being proposed, the site will only be considered where the applicant can demonstrate that:

a) there are no sites or potential sites either within, or on the edge of, Kilkenny City Centre, the District Town Centres and village centres that are (a) suitable (b) available and (c) viable; and

b) they would contribute towards and support the achievement of compact growth and revitalisation/rejuvenation of city or town centre as envisaged in objectives 3c, 4 and 6 of the National Planning Framework in order to allow a positive presumption in favour of the application under NPO 11 of the NPF.

Policy 5: Retail Impact Assessment

A Retail Impact Assessment will be required for development which features:

a) Proposals of greater than 1,000 sq. m of net floorspace in Kilkenny city, including extensions to existing units; or

b) Proposals of greater than 500 sq. m of net retail floorspace in all other settlements, including extensions to existing units.

As described at Paragraph 4.9 and Annexe 5 of the Retail Planning Guidelines, the Retail Impact Assessment shall at a minimum include the following:

(i) Identification of catchment or study area;

(ii) Estimation of expenditure available within the defined catchment or study area;

(iii) Estimation of the turnover of existing centres within the catchment area which is likely to be affected by a new development;

(iv) Estimation of the turnover of the new development for which a planning application is being lodged; and

(v) Estimation of the quantum of consumer retail spending available in the catchment area which will be diverted from existing centres to the new retail development.

In addition to the above, the Retail Impact Assessment shall demonstrate how the development proposal would contribute towards and support the achievement compact growth and revitalisation/rejuvenation of city or town centres as envisaged in objectives 3c, 4 and 6, 11 and 27 of the National Planning Framework.

Policy 6: Kilkenny City Centre

In order to ensure the retail function, profile and competitiveness of Kilkenny City is retained, applications for retail development and other town centre uses that will make a contribution to retaining Kilkenny’s role as the dominant retail destination within the County will be supported.

Retail development and other main town centre uses should be prioritised to be located within Kilkenny’s Core Retail Area to ensure the vitality and viability of the historic core is protected and promoted.  Similarly, it is of great importance to ensure that the historic character of the Core Retail Area is protected.  An important balance must be struck between creating a dynamic and commercially successful retailing environment and an attractive historic setting. Proposals that incorporate improvements to the City’s laneways will be supported by the Council, particularly where involving creative solutions designed to activate redundant spaces.

Policy 7: Town centre accessibility

Improvements to the accessibility of each of the centres will be supported.  In particular, proposals that include developing a pedestrian and cyclist friendly environment, and/or improve safety and limit traffic congestion will be prioritised.  Wherever possible, development that encourages a shift towards sustainable modes of transport will be encouraged.

Policy 8: High quality public realm

Development proposals that incorporate improvements to public realm within town centres, and particularly within the Core Retail Areas, shall be supported by the Council.

Policy 9: Historic environment

Development within each of the centres should be designed in accordance with the provisions of Vol. 1 Chapter 9 Heritage and Vol. 2 Heritage Strategy.

Policy 10: Amalgamation of units

The Council may accept proposals for the amalgamation of two or more units within a centre where the applicant can demonstrate:

a) There is no alternative vacant unit of an appropriate size and location for the proposal; and

b) The proposal would not detract from the overall vitality and viability of the centre; and

c) Where relevant, the proposal has been designed using appropriate conservation principles and expertise (See Chapter 9 Heritage and Vol. 2 Heritage Strategy), thereby retaining the building in use and maintaining the essential character of the streetscape.

Policy 11: Traffic and Transport Assessment

Applications for retail development proposals for more than 1,000 sq. m net floorspace shall be required to submit a Traffic and Transport Assessment (TTA). As required by the Retail Planning Guidelines, the TTA must examine the transport impacts of a proposed development, incorporating any subsequent measures necessary to ensure roads and junctions and other transport infrastructure, including car parks, in the vicinity of the development are adequate to accommodate the proposed development without causing additional delays or issues to existing and future road based traffic. Most importantly, a TTA will be required to demonstrate how to encourage a shift towards sustainable travel modes by those using the retail development in question.

Policy 12: Tourism, Markets and Events

Development proposals within the County’s centres that seek to improve the tourism offer will be supported.  Tourism proposals should contribute to improving a positive public perception.  Proposals that form a link between tourism and the offer of the town centre will be looked upon favourably by the Council.  Similarly, markets and public events that are expected to have a positive influence on public perception of a centre will be supported.  Within Kilkenny City Centre, proposals that would make a positive contribution to the function of the Medieval Mile will be supported.

Policy 13: Retail Parks

No further retail parks will be granted permission in and around Kilkenny City and Environs over the period of this City and County Development Plan.

Policy 14: The Abbey Quarter and Retail Phasing

The Abbey Quarter^[9] will be the focus for city centre expansion (including convenience and comparison retailing) in the City & Environs over the plan period and City Centre expansion shall take place in a phased approach.  The following phasing of development lands for retail within the City & Environs is proposed:

Retail Phase 1: Abbey Quarter and, at an appropriate scale, MacDonagh Junction;

Retail Phase 2: The former mart site at the Castlecomer Road.

The release of phase 2 lands for major retailing will only be considered where either planning permission is granted and/or the local authority is satisfied that, significant expansion has already occurred on the phase 1 lands and that any additional retailing on the phase 2 lands will not have a negative impact on the vitality or viability of the retail core or other centre.  It is considered that the definition of major retail expansion for the purposes of this section of the City & Environs is 1,000 sq. m for convenience goods and 2,000 sq. m for comparison goods.