However several local residents' associations have raised concerns about the scale of the project and the likely increase in traffic congestion in the vicinity of the development planned for the 22-acre site on Cork Road.

Described by Newry-based development and investment company Parker Green International as "a mixed use lifestyle village" the 36,556sq m project could create up to 2,000 jobs and will be built in two phases. The initial phase will involve the construction of a five-storey, 104-bed hotel, a retail warehousing block with overhead offices, an enterprise centre, an eightscreen cinema and a polyclinic which will include a pharmacy and treatment rooms. The development will also include parking space for over 750 vehicles.

Parker Green was set up in 1996 by Dr Gerard O'Hare.

The company has been responsible for a number of high profile construction projects, including the Quays Centre in Newry and the Fairgreen Centre in Carlow. The company paid 33m for the Ballybeg site which was owned by Waterford Crystal and was used for recreational purposes. The lands were rezoned for commercial use prior to purchase. The city council has imposed 38 conditions on the project, some of which are being appealed to the planning board by the developers. Several local groups including the Clonard Park residents association, the Ballybeg action group, St Saviour's AFC and the Woodland Grove residents association have lodged objections with An Bord Pleanala.

"We're a bit worried about the disruption that may be caused during the building work while we also feel that the hotel proposed would be very near to existing houses in the area and could possibly be moved to another location on the site, " says Clonard Park resident, Maureen Walsh. "Traffic is also an issue because it s quite congested on the main Cork Road and this could only make the situation worse."

Parker Green is confident the concerns of residents can be addressed. "All along we've been open and transparent with local people, " says company retail director, Eddie Cull. "We've had four public meetings and we've already made 16 major material changes as a direct result of consultations with residents.

We abandoned our original plan for a sunken amphitheatre because of concerns that it could become a focal point for anti-social behaviour. We initially planned a lot of connectivity between the development and adjacent housing estates. But because people preferred to see the development completely closed off, we've introduced three layers of boundary. We've also used the most sophisticated computer software to gauge sunshine and shadowing caused by the hotel and to assess the likely impact on local properties. As a result we moved the positioning of this building slightly and we've tiered it back back to avoid causing intrusion.

"For us this is a flagship development with knockout good looks. It will be an incredibly high quality scheme and way beyond what a developer would normally do. The inspiration for this has come from better versions of similar schemes in the US. The retail units, for example, have an intricate twisting and undulating roofline.

The signature building, which is located to the front, and is in a crystal-like form . . . to reflect the heritage of Waterford crystal . . . is quite literally jaw-dropping. We expect people to come from near and far just to look at it."