COUNCILLORS are cautiously optimistic that the derelict Kingsway area of Lancaster could become an eye-catching gateway to the city centre after choosing a developer last week.

The ambitious multi-million pound scheme drawn up by Crosby Homes and Liberty Properties includes a six storey structure rising up out of the listed Kingsway building which will include apartments with views over the city's historic skyline.

Councillors said they were impressed by the 'radical design' which also includes a fitness centre, restaurant and leisure facilities plus offices and retail outlets.

The developers fought for the tender against four other companies.

Independent group leader Tricia Heath said: " It's certainly an eye-catching design and will be a massive improvement on the eyesore we currently have as the gateway to the city.

There's not a massive amount of retail on the site so that will not displace shoppers form the city centre and overall it was easily the best tender.

We look forward to working with the developers who were most enthusiastic about getting their scheme off the ground."

Crosby Homes have said they hope to get their full plans in within two months and that construction time should be no more than 18 months.