Maxol Oil Company is considering legal action in a dispute over a one acre site in the North of Dublin that has threatened both the Luas Cross City and DIT Grangegorman projects.
Maxol refused to move its filling station at Broadstone which was earmarked for a Luas stop and an entrance to the new DIT campus after an alternative site could not be agreed.
Dublin City Council is now proposing to build around the station to allow for a construction of the Broadstone campus entrance consisting of a plaza along with separate car, pedestrian and cycle entrances.
However, Maxol Chief Executive Tom Noonan said the company is considering its legal options over the works, which will he says "wipe out a high volume site".
He said Maxol had agreed three years ago to move but Dublin City Council had been unable to provide a site of similar quality.
Mr Noonan says the council is effectively making a compulsory purchase order with the works now being proposed.
Maxol have submitted an observation objecting to the part eight development proposal.
The site is earmarked for a stop on the new Cross City Luas line which is required to be in place by 2017 as part of DIT Grangegorman's planning permission.
The Luas Cross City project which will link Cabra to St Stephen's Green as well as connecting the Green and Red lines will cost over €380m and create 800 construction jobs.
DIT Grangegorman is a €200m project which will eventually accommodate all the different DIT colleges on one site catering for 20,000 students with half that number planned to be there by 2017.
However,both projects have been threatened by the dispute over the Maxol filling station covering around one acre of land.