The site on the Davis Road was officially signed over to the local authority last evening by the new Minister for Defence Simon Coveney.
A master plan for the 11 acre property is being designed and includes the relocation of Clonmel Garda Station, educational facilities and a civic space for the people of the town.
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CEO of the Council Joe McGrath says the project will connect the former army barracks to the heart of Clonmel.
