Cavan based LKD Developments has applied for planning permission for a €10 million nursing home on the former Convent site in the town.
The news comes in the wake of the major job losses at Tipperary Water in recent months.
Independent County Councillor Micheál Lowry says the plans for the Convent of Mercy site are a vote of confidence in Borrisoleigh.
If approved by the planning authority he says the project would benefit the area greatly.
