The government has "no difficulty" exploring how to best make use of the current Tralee Courthouse.
The historic building on Ashe Street is due to be replaced by a new state-of-the-art courthouse on the old Denny site at the Island of Geese.
The Minister for the Environment was responding to a question from Kerry Sinn Féin TD Pa Daly, who says the town has huge development potential.
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The Courts Service agreed to buy the new site from Kerry County Council last October, which would leave the old courthouse building vacant.
Opponents believe it should be refurbished instead, and the old Denny site used for social housing.
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Minister Eamon Ryan says there are grants available for refurbishment.
