The 15:4 decision in favour of Centros's outline plans for the 10-acre site follows three years of master-planning and consultation.
Associate director of Centros, David Lewis, said: "This is a great decision for Lancaster, as it will secure the city centre's future by enabling it to compete successfully with Preston and other centres in the northwest.
"The site is quite unusual in that it slopes upwards from the existing city centre to a canal and includes two theatres and the city's unique Musicians' Co-operative. It has offered us the opportunity to create a truly mixed-use scheme featuring retail, residential and commercial uses while also fostering a vibrant cultural quarter and providing some six public spaces."
Focused around a new shopping street and central piazza, the development will provide some 320,000 sq ft of new retail space, including a 97,500 sq ft Debenhams department store.
Up to 179 town houses and apartments will be built in a residential zone, many of them around a new public park leading up to the canal. The waterside attraction provided by the canalside will be enhanced with the addition of restaurants and cafes. All of the listed buildings on the site will be retained and enhanced, with those that have fallen derelict being completely restored and brought back to active use.
The scheme will also provide over £3 million of highways improvements aimed at easing city centre traffic flows. Further benefits include major improvements to both the Dukes and the Grand theatres, as well as completely new premises for the Musicians' Co-operative*.
David Lewis added: "Lancaster is a very attractive Georgian stone city with many visitor attractions, however, its retail offer significantly lags behind its contemporaries.
Retail demand is strong, with retailers often complaining that they can not find suitable units in the historic centre. This scheme will modernise Lancaster's retail offer whilst protecting and enhancing its heritage."
Following completion of the S106 agreement, Centros's development team - including 3DReid, Montagu Evans, Mayer Brown, Waterman Group and Halogen - will move on to the detailed design and other reserved matters. It is anticipated that a start on site could be achieved during 2010/11, with completion in 2012/13.

NOTES FOR EDITORS:

* Lancaster's Musicians' Co-operative provides facilities for bands to practice. Hosting up to about 70 practice sessions a week, it draws bands from all over the northwest and even further afield. The co-operative currently occupies dilapidated premise on the site. Centros will provide it with purpose-built facilities below the retail floor slab facing out on to a new public square next to the Grand Theatre.

The scheme includes:

320,000 sq ft of retail, and catering space, including a 97,500 sq ft Debenhams department store and approximately 40 shop units

An 800-space multi-level car park

Up to 179 town houses and apartments, including 25% affordable (up to 45 in total)

A £500,000 new foyer for the Grand Theatre

£700,000 of enhancements to the Dukes Theatre

New premises for the Musicians' Co-operative

A new public park and five other public spaces

A new office building for Mitchells

Improvements to the canalside

A pedestrian bridge providing level access to and from the city centre through the existing St Nicholas Arcades shopping centre

£3 million of city centre highways improvements

The Centros development team includes:
Masterplanning & architecture: 3DReid
Planning and retail consultancy: Montagu Evans
Transport consultancy: Mayer Brown
Environmental consultancy: Waterman Group
Public relations and public consultation: Halogen
Project management: Reay & Co.

Centros, one of the UK's leading urban regeneration specialists, is owned by funds advised by property investment company, Delancey. Centros specialises in retail-led mixed-use schemes and has a current development programme that includes the Northern Quarter in Portsmouth; Castle View in Lancaster; arc in Bury St Edmunds and the Coppergate extension in York. This gives Delancey exposure to a directly owned and managed pipeline of more than 2 million sq ft in town and city centres across the UK.

CONTACTS:
Steve Bryson: 020 7087 3260 / 07970 639301 steve.bryson@halogenuk.com
Virginia van der Meer: 020 7087 3260 / 07815 115608 virginia.vandermeer@halogenuk.com
Dee Cornes: 01483 772550 / 07760 415527 dee.cornes@ntlworld.com