A DERELICT bus station is to be demolished and listed buildings restored to generate a brand new gateway' to Lancaster.

Work on creating retail units - including a PC world and a Pizza Hut - and 100 apartments is expected to get under way in the coming months after a Liberty Properties' blueprint for the Kingsway site on Bulk Road and Back Caton Road was given the nod by Lancaster city planners.

Previous attempts by the council to re-use the buildings, including proposals to demolish the bus depot and the baths, have failed.

Chester-based Liberty says the design will be modern but in a style that fits in with the neo-classical heritage of the site'.

Spokesman Paul Norman says work will start in the next few months'and the company is already in talks with residential developers.

Lancaster Civic Society was concerned there was no evidence of community benefits in the scheme and Real Planning for Lancaster said although they agreed with regeneration, residents wanted small shops rather than a large PC World.

Cllr Eileen Blamire said: "I used to go the baths as a little girl and it was wonderful, but we can't wish that time back and something else needs to be done now."