An Bord Pleanala has given the go ahead for a major development on the shore front in Buncrana which will see a land mark hotel demolished.
Buncrana Town Council had granted conditional permission for the project but that was appealed to An Bord Pleanala.
The board gave permission for the development of over 70 units of accommodation despite a recommendation from its own inspector that it shouldn't.
The plans include the destruction of the old Swilly Hotel on the Shore Front site, it had been previously recorded as a building of special character by Duchas.
In its place the plans propose over 70 residential units, three houses, a creche, 97 car parking places and all associated works.
In confirming its decision the planning board rejected its own inspectors report which mainly took issue with the developments ecological impact and effluent disposal.
However the board says it is satisfied the five story development would not put any extra loading on the public sewerage system than the hotel it replaces.
The board also rejected other concerns raised by objectors which including the old hotel's local historical links, the size of the new development and claims its design would be out of keeping with the town.