Permission was granted last July for a development on O'Connell Street in Clonmel – it involved a change of use from a retail discount store to a coffee shop and bakery.
The man behind the plans is Martin Quigley who already runs a similar business in Nenagh.
Exhibition House is a protected structure on Clonmel's main thoroughfare at the junction with Bridge Street
Following the granting of permission by the County Council an appeal was lodged with An Bord Pleanala by another bakery and café outlet operating nearby.
Among the concerns raised was the flood risk in the buildings basement and the proliferation of coffee shops already in the vicinity of O'Connell Street.
However An Bord Pleanala has ruled that the proposed development wouldn't seriously injure the amenities of the area or exacerbate flooding problems in the area
The site is located within the 1 in 100 year flood zone of the River Suir, but is defended from flooding by the Clonmel Flood Defence system.