Planning permission has been given to father and son team, Michael Kelly senior and junior, who are local builders, to construct a E40m mixed-use scheme close to The Diamond, in the town centre. The new centre will be designed to include a major retailer as anchor tenant, as well as a multi-screen cinema. The project will also include 52 apartments and offices. Work is due to start before the end of this year, with completion scheduled for 2009.

The go-ahead for this scheme comes just four months after another scheme was given the go-ahead. Keeney Construction was granted permission to build a E100m retail centre on the site of the old Magee clothing factory and at Upper Main Street. The main retail part of the centre will overlook the River Eske.

It's just six months since the locally controversial decision was made to turn down Bennett Construction's plans for a new shopping centre in Donegal Town, with 6,500 sq m of retail. It had already been agreed that Dunnes Stores was going to be the anchor.

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