The Dublin Docklands Development Authority (DDDA) is set to advertise for "a good operator with a proven track record" to develop a 250-bedroom hotel and 130 residential units on a 1.2 acre portion of the former Bord Gβis ╔ireann site, which lies south of the Liffey.

The site is located to the northwest of the 21.5 acres owned by the DDDA, which in its entirety will be called Grand Canal Harbour. The successful tender will have to submit plans for "a good hotel with excellent architecture" according to Grβinne Hollywood, the DDDA's director of property, who says it must be "a stunning looking building" because it will be so visible from the vast 1.5 acre piazza which will be called Grand Canal Square.

"They will also have to present a realistic building programme and opening date," she says. It is envisaged the 180,000 sq ft hotel will cost in the region of £45 million (57.14m) to develop and will be either a four or five-star operation.

The authority is open to ideas regarding the format of the residential element. "It may be an apart-hotel, completely separate apartment blocks or it may be student housing," says Ms Hollywood.

The decontamination of the first 10 acres of the harbour site has taken 14 months and has cost £30 million (38.09m). Construction in this area will commence as soon as the Environmental Protection Agency surrenders the licence for phase one of the remediation. This is anticipated before the end of the year.

The DDDAhas sold two parcels of land close to the hotel site - half an acre to US company Novell for around £30 million (38.09m) and 1.25 acres to Treasury Holdings for a sum believed to be in the region of £25 million (31.74m).

Both companies are to develop six-storey glazed-front state-of-the-art office blocks which are expected to take up to 20 months to build - Novell's corporate building fronting on to Sir John Rogerson's Quay will be 120,000 sq ft and Treasury Holdings office, also fronting the Liffey, will be around 230,000 sqft.

The planned 150-space underground car-park south of Misery Hill will begin construction in November followed by the 1.5-acre piazza, also south of Misery Hill, which will be landscaped with seating and synchronised fountains. Another centre-piece of the development will be an arts and cultural building off the piazza.

The concept drawing of the harbour, which will be gradually developed over a 10-year period, shows several concentrated clusters of mixed development - residential, retail, office, cafΘs, bars and restaurants - to the north and west of Grand Canal Dock.

When completed, Grand Canal Harbour will have over one million sq ft of office and retail space, and over 1,200 new homes with 3,000 residents.

Around 60 per cent of the site will be given over to residential use. The Authority has selected London architectural practice Benson and Forsyth to build 230 apartments in the Pearse Street/Macken Street area.

Phase two of the remediation is under way and, according to Ms Hollywood, will be more straightforward than the first because there are no large tanks to navigate.

"It's been a slow process, but we've had to be thorough. There's been nervousness about the site because some of the old tar tanks were exposed and were smelling and people were worried they were poisonous.

"We have spent the last 14 months monitoring the soil and air and reporting to the community. At this point it is probably the cleanest site in Dublin."

With regard to criticism that the building-heights are too low for a docklands area - most are a maximum of six storeys tall - Hollywood says that the harbour concept is designed so that the five lone 20-storey landmark buildings will have maximum impact.

"Dublin is not a tall city. The Millennium Tower is impressive, but if there were 20 or 30 of them in a small space, it would not be quite so impressive; it would lose context, and likewise with a spread, these buildings will be more visible."

The residential element will include 20 per cent social and affordable housing and the DDDA says it is hoping to attract families into the area. "A big proportion will be large apartments and three-beds. We want a mixed population of homeowners not just investors. We believe that with larger apartments, people are more likely to stay and won't just buy there as a two year stopgap. We are becoming more European in outlook."

The DDDA under its special powers has granted Section 25 planning permission to Duffy Lally Properties for a 30,000 sq ft office development called South Bank Quay and to Ellier Developments for a mixed residential and commercial scheme at 5-7 Hanover Quay.