Dundalk has launched its bid to secure €50 million from the gateway innovation fund for the creation of a new eco-friendly neighbourhood.
The town is aiming to become a gateway to the northeast with a target population of 60,000. This would make it one of Ireland's first new cities of the 21st century.
The planned neighbourhood is to accommodate 8,000 new environmentally-friendly homes for a possible 20,000 new residents in the southwest Dundalk neighbourhood.
The ambitious project requires total funding of €155 million with the balance, €105 million, coming from private investment combined with development levies and other monies secured by the local authority.
The gateway plans also include developing infrastructure in the underdeveloped northwest of the town where a €55 million national arena is already planned by a private investor.
Both localities would be served by smart buses powered by bio-fuel, electricity and hybrid sources. There would be a total of 79km of cycle paths.
Launching the submission, Minister for Foreign Affairs Dermot Ahern said the innovation fund has great potential to trigger sustainable growth in the gateway towns and cities in the context of efforts to rebalance the country for the 21st century.
He said the Dundalk plans outline a mix of innovative elements and a genuine spirit of partnership between public and private sectors.
The "eco neighbourhood" will also feature a district heating system to reduce energy use. Much of the cycle path network will be separated from roadways, making cycling safer and more attractive.
The Dundalk bid will now be examined by the gateway innovation fund management committee.
This comprises representatives of the Department of Environment, Heritage & Local Government and a final report will be submitted to the Cabinet.