An Bord Pleanála have rejected several major elements of Arnotts' proposed 'Northern Quarter' development, in a decision that could send plans back to the drawing board.

The planning authority has told Arnotts that it must dramatically reduce building height and car parking provision and include more public space in the plans.

Proposals for the €1bn development on the site of the Arnotts department store in Dublin city centre were approved by Dublin City Council last year.

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Work, which had been expected to complete in 2011, would turn the eight-acre site into a shopping and residential quarter, with a revamped Arnotts store and 50 other shops, cafes, restaurants, 175 apartments and a 149-bedroom hotel.

However, reports this morning have said that An Bord Pleanála has told the retail company that no building can be over seven storeys tall and that it must be content with the 350 capacity car parking provision already at the site.

The board also rejected a plan to revamp the facade of the Penney's building beside the GPO.

The redesign will now mean that a decision on whether the project is to be approved or not is unlikely before September.

(VB)