THE Kingsway area of Lancaster is to be totally transformed into a £40 million leisure, hotel and retail development that could create up to 500 new jobs.

Lancaster City Council has chosen Chelverton Properties to carry out the ambitious project which will revitalise the northern entrance of the city.

The massive scheme was warmly welcomed by councillors keen to see the "eye sore" brought back to life but Green Party leader Jon Barry has voiced concerns about the lack of consultation.

Chelverton paid the council around £4 million to purchase the 220,000 sq ft site which includes the listed Kingsway bus station and old coach house.

There will be a mixture of leisure, office, hotel and retail uses plus major changes to the surrounding road network and a 600 space "park and walk" scheme.

Chelverton say they will ensure that the development will be designed to complement the existing city centre and spokesman Eifion Phillips said: "In recent years investment in shopping and leisure facilities in neighbouring centres has caused a decline in the attraction of Lancaster. As other centres continue to expand their facilities it is vital that Lancaster competes by adding new attractions that help the city grow and develop into the next millennium."

He added: "Chelverton believes that its Kingsway proposal affords an opportunity to revitalise Lancaster's retail and leisure proposition. The development will increase retail and leisure operator confidence in Lancaster and will act as a catalyst for further investment and developer interest. We look forward to working with Lancaster City Council to create an exciting and viable scheme worthy of the city's proud history."

During the vote to accept Chelverton's tender, Cllr Jon Barry abstained.

Explaining his action, Cllr Barry said: "I was disappointed that the proposed plans contained no community facilities, such as an ice rink which so many people have been asking for. There was no public consultation and the 600 space car park will generate extra traffic. But because the sale is a hangover from the previous regime at the council and because of the financial position they left us in I decided to abstain."

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