Dublin Corporation has made a Compulsory Purchase Order for the former Carlton Cinema in Upper O'Connell Street, an adjoining site that has been derelict since the Pope's visit to Ireland in 1979 and other properties in the vicinity.
This long-threatened action is being taken following the failure of the Carlton Group to proceed with plans for a major shopping and entertainment centre for which planning permission was granted by An Bord Pleanβla in August 1999.
One of the most intriguing possibilities for this pivotal site is that the Abbey Theatre might relocate there.
Such a move would be warmly welcomed by the corporation because it would provide O'Connell Street with a major cultural anchor.
The property being compulsorily acquired also includes the office block occupied by Fingal County Council, Dr Quirkey's Good Time Emporium and Carrolls gift store, all of which had been assembled by the Carlton Group for its abortive Millennium Mall.
A statement from the corporation said the action was being taken to "stem the physical deterioration and neglect of the various parts of this site" and negative impact it was having in "weakening the commercial viability of the upper end of O'Connell Street".
Not only did the site "seriously detract from the architectural character and physical heritage" of the street, but the "extensive dereliction" to the rear even "threatens to undermine the future of the historic street market on Moore Street", the corporation said.
During the late 1990s the Carlton Group found itself locked in a bitter struggle with Treasury Holdings, Dublin's largest property developer, over the O'Connell Street site. Carlton, which is chaired by Mr Richard Quirke, eventually won - and then did nothing.
Although tax incentives would still be available for developing the site, the current downturn is likely to mean that the scheme by Carlton - amounting to 40,000 sq metres of retail and leisure uses - has "missed the boat" and may no longer be commercially viable.
The Abbey Theatre wanted to move to a triangular site at the edge of the Grand Canal Docks, until it ran into strong opposition from the Taoiseach, Mr Ahern.
