A planning application for a mix of town houses and apartments at the old Milford Hotel has been submitted to Donegal County Council.
The two million euro project would see part of the old hotel demolished while renovating the front of the existing building.
The owners had the site on the market but it's understood that when it didn't attract a buyer they decided to proceed with their investment plans.
A decision on the application is expected at the end of April.
Cllr Liam Blaney says it's important that the community of Milford be fully aware of what plans are on the table: