A new Cultural Quarter including a City Library at Parnell Square has hit a stumbling block.
The City Council is splitting the project in two, after being advised it may never be able to raise all the money it needs.
The idea was first suggested in 2012, and Dublin City Council had agreed to foot 45% of the bill.
The plan involved raising 55% of the cost from donations.
However, the charitable trust set up to raise the funds has advised that reaching the target could take three years - or may never happen.
On the back of that advice, Dublin City Council has decided to split the project in two.
It has agreed to take charge, and pay for, the building of an €80m new City Library.
The Chief Executive of the City Council has described the development as ‘most disappointing and unwelcome’.
However, Owen Keegan has stressed that "every effort should be made to ensure the project proceeds".
Work on "a range of cultural facilities" at Parnell Square would begin once enough money is raised from donors.
The Cultural Quarter is supposed to include facilities like a music centre, conference space and exhibition area.
That part of the project also involves the creation of a public plaza and the redevelopment of a row of Georgian houses.
The Parnell Square Cultural Quarter has been described as "a major flagship development for Dublin city".
Those behind it say it will play "a key role in the regeneration of the north inner city, as well as providing a new focus and destination at the northern end of O’Connell Street".
