A Co Cork harbour town is set to receive a major boost after health and safety clearance was given to a £150 multi-million pound residential and commercial development.
The new project in Passage West will include a hotel, up to 300 apartments, and a retail and office area.
Cork County Council was forced to axe projects in the town earlier in the year after the Health and Safety Authority (HSA) ruled the development was too close to the Irish Fertiliser Industries plant in the harbour.
The HSA' s original recommendation was based on the EU's Sevesco Directive - which specifies that if certain activities are carried out within a three mile radius of a residential area then no further development can be carried out within specific parameters.
Management at IFI set up a meeting with the Health and Safety Authority earlier this year and agreed upon measures to enhance the safety of the plant.
The decision by the HSA to allow development in the harbour has been welcomed by Progressive Democrats chairman, Mr John Minihan, who said the original blocking of the project was a major blow to the town.
"People were in a situation where the town had been granted urban renewal status in 1999 but they couldn't build anything.
"It would have been like a death sentence for this town if the development was sidelined." Housing prices, he said, were also spiralling downwards.
Meanwhile, area businesses are hoping the new resident population will provide a boost to trade in the area. There is also a possibility that a multi-storey car park may be built as part of the development which would ease traffic congestion in the town. The project is expected to be carried out by Haulbowline Industries Ltd which is run by the Hill family.