Plans for the redevelopment of the Áras Phádraig site on Lewis Road have hit a significant administrative roadblock following the official rejection of the previous proposal.

At this Wednesday’s meeting of the Killarney Municipal District, Cllr Marie Moloney sought an update on the project’s status after elected members famously voted down the original plan last July.

The original scheme, which had been four years in the making and cost nearly €900,000 in preparatory fees, included a theatre, a public plaza, and a six-storey HSE Primary Care Centre.

While this multi-million euro project had been approved in principle by the government, the decision by Killarney’s seven councillors to reject the HSE element meant the existing business case was no longer valid. Council officials confirmed this week that because the project no longer has planning permission, the Department of Housing has withdrawn its approval for the previous funding model.

To secure future investment, the Council has now been instructed to submit a completely new preliminary business case.

This new application must align with the original conditions of the Urban Regeneration and Development Fund (URDF).

The URDF is a national competitive fund designed to rejuvenate town centres through sustainable development and high-quality civic spaces.

However, because it is a competitive process, funding is tied to specific plans that demonstrate a high socio-economic return.

The Council’s reply to Cllr Moloney clarified that the new business case will focus only on a theatre and public plaza.

Crucially, it was revealed that requests from councillors to include a new library or an expanded Arts Centre were not part of the original URDF application.

Because the funding process is so rigid, adding these new elements now could jeopardize the chances of receiving any government money at all, as they were not included in the approved in principle bid from years ago.

This leaves the town in a difficult position.

While councillors and the public overwhelmingly opposed the height and scale of the six-storey HSE building, that anchor was the primary driver of the project’s financial viability under URDF rules.

Management warned that without the Primary Care Centre, the project may struggle to meet the strict requirements of the national fund.

For now, the Council will proceed with a plan for a scaled-back theatre and plaza, while the prospects for the long-promised library and civic hub remain outside the scope of current government funding.