City Councillors this week blocked proposals to develop residential property at the City Gate Plaza site in Mahon.
Developer JCD had proposed to add the apartments in a bid to address the critical housing shortage in the city.
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The City Gate Plaza office development, next to the CSO office, is to proceed.
However, with permission for residential zoning denied, the developer has confirmed that it will proceed with the permitted office development at the site, creating more than 200 construction jobs in the process.
A spokesman for JCD said: “We are pleased to confirm that we are proceeding with the permitted office development at City Gate Plaza, which will be commencing shortly, creating over 200 construction jobs.
“JCD have recently funded and completed an extra lane from City Gate to Mahon Point Shopping centre, which has drastically improved traffic flows in the area. This, in conjunction with the road enhancements and investment in public transport infrastructure proposed and being carried out by the City Council, will improve accessibility.
“The new development will go some way to reducing the shortage of Grade A offices in the city and help maintain Cork’s position as an attractive location for foreign direct investment in the face of very stiff competition from other US and European locations.”
The decision to reject the addition of residential units to the site was described as ‘disappointing’ by the developer.
The spokesman said: “As a Cork-based company, who have invested significantly in the city right through the recession, we hear first-hand from large employers the challenge their staff face in finding suitable rental accommodation. In fact, the information pack we sent to all councillors in October, included letters of support for the amended use from five of the largest employers in the area.
“In our view, it is of strategic importance to develop more residential accommodation close to employment hubs, such as Mahon.”
More than 3,000 people are now employed at City Gate, with major technology companies including Dell, EMC and Intel.