REGENERATION of the run-down Castle Piccadilly area of York has always been regarded as important to the long-term viability of the city centre. Nevertheless, the news that LaSalle Ltd has abandoned plans for a full-scale redevelopment of the area may not be altogether bad news.

Building a major, commercially viable shopping centre in such a historic and sensitive location was always going to be difficult.

That became clear when, in 2003, a Govern-ment planning inspector threw out earlier plans for the site, even though they were backed by the city council, saying they were “totally unacceptable in the context of the historic setting”.

Once planning permission was given for new shops at Monks Cross it may well have killed off any hope of making a big new shopping centre at Castle Piccadilly viable.

There was a danger the site could have continued to stand neglected and run down for years. Instead, LaSalle is now considering a smaller proposal, to convert the Banana Warehouse and a couple of neighbouring buildings into two new shops with 37 flats behind.

This is hugely welcome. If it goes ahead, an area that has become an eyesore could be rejuvenated. The new shops will make the city centre more competitive, and having people living here will bring a buzz of its own.

Smaller-scale, ‘piecemeal’ development like this has been going on in York for 1,000 years, says the York Civic Trust, which has welcomed the new approach.