Dublin City Council has given the go-ahead to redevelop Lower Liffey Street into a plaza space.
The council also supported plans to pedestrianise the street.
Sinn Féin spokesperson for Dublin Denise Mitchell TD said it is a welcome boost to the north inner city.
She said: "The case for this redevelopment was clear with figures for the street showing that pedestrians outnumber cars by a factor of 35 to one and Lower Liffey St is a key pedestrian route across the river.
"This should encourage more consumer activity across the city as well as progressing to more car-free spaces in the city. As well as being a boost for local businesses from potential increased footfall, this can be a pro-environmental move, showing once again that these are not mutually exclusive decisions."
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