A flagship element of Project Ireland 2040, the Urban Regeneration and Development Fund (URDF) is providing part-funding for applicant-led projects that will significantly contribute to the regeneration and rejuvenation of Ireland’s cities and other large towns, in line with the objectives of the National Planning Framework and the National Development Plan.
In 2021, following the second call for proposals under the URDF, funding support was announced for Kerry County Council's successful proposal – Destination Killarney. This proposal included the regeneration of the Áras Phádraig site to develop a cultural and commercial hub, and involved the
construction of a new theatre, with community space, and public plaza, as well as a serviced site to be provided to the HSE for a Primary Care Centre.
The project received Preliminary Business Case Approval in March 2022. The Council initially obtained Part 8 planning in February 2025 for the regeneration of the Áras Phádraig site. However, an issue with the relevant Part 8 submission was subsequently identified and this decision was rescinded at a special meeting of Killarney Municipal District in July 2025. At the same meeting, permission to proceed with the resubmitted Part 8 was refused.
My Department is currently awaiting a further submission from the Council setting out its revised proposals for progressing the project. This submission will be given due consideration in the context of the original Call 2 application.
In relation to the consideration of providing one and two bedroom apartments on the site, and while it is a matter for Kerry County Council to decide on the most appropriate use for the site, it should be noted that the URDF does not provide funding for residential units so other relevant funding sources should be sought for such a proposal.
Finally, while my Department works closely and communicates regularly with Kerry County Council, responsibility for the advancement of URDF-supported projects through the various stages of the project lifecycle is, in the first instance, a matter for the Sponsoring Agency (in this case Kerry County Council).