An Bord Pleanala yesterday granted planning permission for a shopping and entertainment complex centred on the Carlton cinema site, at Upper O'Connell Street, Dublin.
But the Carlton Group said it "wouldn't be surprised" if the board's decision is challenged in the High Court by a subsidiary of rival developers Treasury Holdings Ltd, which had appealed against Dublin Corporation's decision to approve the scheme.
This appeal has held up the project by nine months and legal action by Keelgrove Ltd, the Treasury Holdings subsidiary, could delay it by a further two years.
Mr Paul Clinton, Carlton's chief executive, conceded yesterday that his group was "not out of the woods yet" but had "no intention of giving in to them" (Treasury Holdings) by agreeing to its demand for a 50 per cent stake in the £100 million project.
In its decision, An Bord Pleanala said it would make a "significant contribution to the regeneration of the area and would not seriously injure the amenities of property in the vicinity".
Six conditions laid down by the board include a requirement to widen the proposed galleried mall linking Upper O'Connell Street with Moore Street.
The board also specified that the facades flanking the Carlton should integrate more closely with the neo-classical character of O'Connell Street and the roof should be amended to reduce its mass and environmental impact.
Car parking on-site is to be reduced from 700 to 500 spaces, with all of these to be available for short-term use and not for commuter parking. At the suggestion of the developers, to guard against any abuse, only half the spaces are to be available from 10 a.m. daily.
In a statement welcoming An Bord Pleanala's decision, the Carlton Group quoted Dublin Corporation's deputy chief planning officer, Mr Dick Gleeson, as saying that the Millennium Mall would create "a new economic centre of gravity on Upper O'Connell Street".
It said the complex would be twice the size of the ILAC shopping centre and similar in size to the Jervis Centre and the Parnell Centre combined. "The impact of this level of financial investment would restore O'Connell Street in one sweep," it declared.
Mr Clinton said he was hoping to go to tender with a view to appointing a contractor by the end of this year. However, he conceded this timetable would not be met if there was a judicial review of the board's decision.
