Dublin Castle cafe at centre of security shutdown dispute to close permanently

The Silk Road Cafe, which created a security issue at Dublin Castle during Ireland’s presidency of the Council of the European Union, is to close down following final mediation talks.

The 40-plus staff will receive their final wage packets on Friday.

Terms of the settlement are to remain confidential. However, a source said mediators had made a deal with the tenant which had “encouraged him to leave”. Only two months remained of the six-month security shutdown period at the restaurant.

Solicitor Tony Hanahoe, who with barrister Hugh O’Flaherty had fought the tenant’s side of the case, refused to divulge details of any agreement.

The cafe’s owner, Lachen Phelan, had been granted an injunction restraining the Chester Beatty Library, his landlord, from closing it down for security reasons for the six months duration of Ireland’s presidency of the European Union.

[ Dublin’s Silk Road Cafe granted injunction to stop landlord from closing it during EU presidencyOpens in new window ]

O’Flaherty, representing Phelan, told Judge James O’Donohoe in the Circuit Civil Court that the cafe had been shut down from time to time on big public occasions such as Queen Elizabeth’s State visit and for the inauguration of presidents, but never for as long as 6½ months.

Catering for events and functions had always formed part of the cafe’s business and from the earliest days it had provided catering for Chester Beatty events, for conference delegates, evening receptions and all external events. Phelan paid a rent of €1,666 a month with another €337 monthly for bins plus 5 per cent of the cafe’s gross profit.

Phelan said he was simply told the library had to close as Dublin Castle was going “into complete lockdown” from July 1st. No one, either from Chester Beatty or the Office of Public Works (OPW) had shared with him the reasons why he had to leave the premises.

[ Owner of Dublin’s Silk Road Cafe fearful business could end for good due to forced closure for EU presidencyOpens in new window ]

Phelan stated that for the last number of months the Chester Beatty had been making it difficult for him to do business. The water service had been switched off, followed by an undertaking that it would be repaired and switched on again after he had vacated the premises.

His solicitors had twice written to the Chester Beatty advising that Phelan would be looking for a new tenancy following the end of the current agreement on July 16th.

The OPW had said relevant security arrangements had been finalised last February following an 18-month consultation process involving An Garda Síochána, the Department of Foreign Affairs and the Chester Beatty Library.

“On 14th June I received an email advising me that I was to make no attempt to enter my business from the 15th June onwards which means the defendant [Chester Beatty Library] has effectively locked me out of my business with my stock and belongings inside,” Phelan had stated.

It was finally agreed the best method of dealing with the matter was through mediation, which ended last week.