Arnotts has been forced to purchase a pub to house six small businesses that had refused to make way for the department store's mammoth redevelopment plans.
The €750m Northern Quarter project which will revolutionise Dublin's most famous shopping centre was given the green light by council planners in July.
However, the Sunday Tribune can reveal the retail giant paid around €6m for the Kiely's pub and K3 premises on the nearby Upper Abbey Street in order to provide new retail homes for neighbouring businesses that were reluctant to move.
As well as the new premises significant cash deals were also given to the shopkeepers and the way has now been cleared for construction works.
It is understood the businesses were reluctant to sacrifice their central Abbey Street addresses for a cash deal alone, forcing Arnotts to increase their offer to include new premises.
The deal took around 12 months to hammer out and it is believed the popular Kiely's pub will also be redeveloped to accommodate the mixed retailers.
Sources familiar with the deal told the Sunday Tribune that while the overall cost of the payout was significant it was not-unexpected, and in keeping with similar deals in other major schemes.
Arnotts, which is still some time away from beginning development works in the north side of the city, declined to comment on the deal last week.
"As with all developments of this nature these things need to be done and they cost," the source said. "But it's not unusual and it just proceeds the way it has to."
The deal worked out between Arnotts management and the six retailers has now left the path clear for the mammoth redevelopment project which will begin towards the end of next year.
"It's been going on for a while, for quite some time, but that is no surprise, it is the nature of things," the source said.
An Bord Pleanála granted permission for the ambitious project in late July and its construction is expected to create some 5,000 jobs. The five-and-a-half acre site is bordered by Henry Street, Liffey Street, Middle Abbey Street and O'Connell Street.
On completion it will comprise 47 shops, 14 cafes, 117 apartments, a 143 bedroom hotel as well as restaurants and bars.
HKR Architects, who are heading up the design of the new development, had originally envisaged a landmark 16-storey structure.
However this was later scaled back by the planning appeals body who deemed it too high, referring to the design as "unduly obtrusive" and a characteristic that would "seriously detract from the balance and architectural coherence of these streets." As a result the plans were dramatically revised, reducing the overall height to just seven storeys, less than half the original proposal.
The number of parking spaces and apartments was also reconsidered, a move which all together should reduce the build cost from a total of €1bn to €750m. When works commence, the department store will relocate to the former Debenhams store in the neighbouring Jervis Centre.
Sunday Tribune
www.buckplanning.ie
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