The first phase of a planned three stage regeneration of St Michael’s Estate in Inchicore, Dublin, was approved today by Minister for the Environment John Gormley and Minister for Housing Michael Finneran.
St Michael’s Estate was one of five communities where public private partnership (PPP) schemes with developer Bernard McNamara collapsed last year.
Exchequer funding for the social housing component of the first phase of the project of €7.8 million is being provided under the Social Housing Investment Programme.
Following the collapse of the PPP scheme, Dublin City Council re-examined its options for the regeneration of the area.
It will spend €35 million over a 10-year period to deliver the social housing element of the Inchicore housing complex - 137 social units will be built in two phases, the first starting in 2010.
Land will later be marketed to the private sector for 450 homes, which will include 20 per cent social and affordable housing.
The first phase involves the construction of 32 social units in the estate which will ultimately comprise 68 social homes and 69 affordable homes and also crèche and community facilities.
The second and third phases will involve the development of commercial and community uses for the site and also private residential development and a village square.
Speaking this afternoon, Mr Gormley said the proposed phased incremental approach to the regeneration project would "afford the best opportunity for momentum of the regeneration process to be maintained and built upon".
“Development of this first phase will renew the residential viability of the estate and leave the project best placed to attract commercial interests and private investment and development into the area,” he said.