Councillors unanimously approved planning permission for the redevelopment of the Áras Phádraig building.
A special meeting of Killarney Municipal District was held on Friday morning to consider the proposal.
It was donated to the town council by the Franciscan Order in 2009, but has been idle since due to legal difficulties.
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Plans for the site were unveiled in 2021, to include a new theatre with exhibition space, meeting rooms and an outdoor public plaza with a HSE-run primary care centre and car park.
Cathaoirleach of Killarney MD, Councillor Maura Healy-Rae says Áras Phádraig wouldn't have been her first choice, however it was a non-runner if the primary care centre wasn’t included:
