Work is expected to start in the third quarter of this year on the proposed new cultural plaza in the Stephen Street Car Park in Sligo town.
It’s envisaged the development will accommodate a variety of outdoor activities.
It’s already being used for concerts, festivals, markets and public screenings.
Funding of €2.5m was recently announced by Failte Ireland for the project.
Fianna Fail Councillor Rosaleen O’Grady sought an update at this week’s meeting of councillors from Sligo Borough District.
Council Director of Services Dorothy Clarke said the assessment of tenders for detail design works is currently taking place and it is expected that a preferred bidder will be selected in the next two to three weeks.
Councillor O’Grady welcomed progress on the project.
