The project, part of a wider regeneration plan supported by the Belfast Region City Deal, includes a new city park, theatre, and relief road. The civic centre will consolidate 215 council staff into a single site on Abbey Way, currently a multi-storey car park.

The building will host council meetings, weddings, office space, and an innovation hub. Due to hybrid working, it will accommodate 162 staff daily. However, concerns have been raised over its proximity—just 45 metres—to the near 200-year-old Newry Cathedral. The Catholic Church and others argue that the removal of car parking nearby will impact churchgoers and city centre visitors.

The council maintains that the development will enhance footfall, boost investment, and repurpose an underused site, retaining 136 parking spaces. Objectors, however, cite traffic, design, scale, flooding, and the planning process itself as major issues. Some say planning documents were incomplete or outdated.

At Thursday's planning meeting, after hearing from both sides, councillors approved the plan by four votes to one, with one abstention. Legal advice was taken before the vote, and Alliance Cllr Cadogan Enright withdrew in protest.

Sinn Féin’s Cllr Declan Murphy and SDLP’s Cllr Declan McAteer welcomed the decision, saying it will help transform Newry and boost its profile along the Belfast–Dublin corridor. Objectors, including Canon Francis Brown, expressed disappointment and are considering a judicial review, Northern Ireland’s only legal recourse for third parties.

Construction is expected to begin in summer 2025.