The way has been cleared for a mixed-use development which will involve the demolition of the Tivoli Theatre in Dublin's Liberties to make way for apartments, shops and offices.

However, the scheme has been significantly reduced in size.

An Bord Pleanála has upheld Dublin City Council's decision to grant permission to Anthony Byrne for the scheme at the Tivoli Theatre, a protected structure located at 135-143 Francis Street and 72 Thomas Street, Dublin 2.

Granting permission subject to 19 conditions, the board stated that the development would not seriously injure the visual or residential amenities of the area.

However, the board has ruled that an 11-storey tower element be omitted and the overall height be reduced to four storeys and a penthouse level.

As a result the number of apartments has been reduced from 120 to 90.

The planning board also stated that a crèche be provided in place of one of the live-work units and will be subject to a separate planning application.

The eight-block development, which will also involve the construction of shops and offices and a new licensed theatre venue, drew considerable criticism from An Taisce and the Irish Georgian Society (IGS).

An Taisce expressed concern about the impact of the development on St John's and St Augustine's Church on Thomas Street, which is in close proximity.

The IGS said the development would "disrupt the hierarchy" of the "historic skyline".

The Tivoli Theatre opened in 1987 and doubled as a venue for rock concerts.

Two years ago some €3 million was spent on converting the venue into a modern nightclub.