DUBLIN CITY COUNCIL has said it is refunding €7 million to property developers as it failed to complete public infrastructural projects in the Heuston Station area.

In a statement, the local authority explained that because of the economic situation, the envisaged development did not proceed as planned.

“Therefore, we are obliged to refund the contribution we received,” it explained.

Property developers were asked to contribute to the scheme to cover exceptional costs as they would benefit from the facilities in the regenerated area.

According to the council, where the relevant works have not commenced within seven years, the funds collected must be refunded.

The plans had including a new urban quarter and two bridges. RTÉ reports that some of the money will be repaid to receivers for the Heuston South Quarter and the Clancy Quay projects.