Houses are to be built on part of the former Pretty Polly and Sara Lee site in Killarney.
The 7.4-acre site and derelict building has been vacant since 2009 and is now under the control of Kerry County Council.
Killarney Municipal District Manager Angela McAllen said the council invited expressions of interests for the site and received two tender bids in February of 2020.
However, these have been withdrawn due to economic uncertainty caused by the pandemic.
Ms McAllen said she is confident the site will be attractive to developers when the economy improves.
Meanwhile, the housing section of the council plans to build houses on a portion of the former factory land.
Concern was expressed by some Killarney councillors regarding the density of houses in that part of town, given that an estate is currently being built in the Tiernaboul Spa area.
