DUBLIN City Council has warned that it could lose out on almost €2m in annual revenue as a result of the construction of the new Luas line.
The major development in Dublin, which will link St Stephen's Green to Broombridge in Cabra, is expected to be completed by 2017.
It's emerged that the council coffers could be negatively impacted as a result of the Luas project.
Officials believe that the council will lose out on €1.8m in parking revenue in order to facilitate the construction of the 5.6km line.
In a written response to independent councillor Nial Ring, the council said that approximately 440 parking bays will have to be removed to accommodate the works. The council will now enter negotiations about agreeing a compensation package as a result.
"It is estimated that approximately 440 parking bays will have to be permanently removed to facilitate the Luas Cross City and that the loss of income from these spaces would be in the region of €1.8m per annum.
Discussions are currently taking place with NTA and the RPA on a compensation package to include a number of items including loss of paid parking revenue," said an official in the council's Parking Enforcement Section.
Speaking to the Herald, Mr Ring insisted that the city should not be at a loss as a result of the Luas development.
"The €1.8m that we would lose would go a long way in Dublin City and therefore it is essential that we are compensated for these works. You cannot have a situation where the city's finances are impacted upon and I would expect the relevant stakeholders to recognise that," he said.
The construction works themselves are set to affect several important streets in the city.
Streets affected will include St Stephen's Green, Dawson Street, Westmoreland Street and O'Connell Street. The first trams will run from late 2017.
About 44 square kilometres of streetscape will be dug up to accommodate the works, and utilities will be moved out of the path of the tram so that any future maintenance or upgrading will not affect operations.