A LANDMARK building in York city centre is set for a major overhaul.

The empty Banana Warehouse could soon be converted into 49 apartments with shops below.

Wetherby-based Oakgate is working with landowners Steamrock Capital to redevelop the building on Piccadilly, and plans show the building’s eye-catching frontage is to stay with new buildings going up behind and to the south of it.

The site falls within the “Castle Gateway” - a large redevelopment plan the city council hopes will transform the city centre from St George’s Fields car park to Clifford’s Tower and the Eye of York, Coppergate and Piccadilly. The council revealed its latest version of plans for the area in January, when councillors agreed to “explore” the possibility for a formal partnership with Steamrock Capital - which also owns Ryedale House, the empty office block further down Piccadilly, and the Coppergate Centre leasehold.

Now the council says it is supportive of the plans, as they would bring a vacant and “somewhat neglected” part of Piccadilly back into use.

Steamrock director Dan Neary added: “Our plans for the redevelopment of the Banana Warehouse represent a significant step forward in the regeneration of this area. It is one of York’s most recognisable buildings, which is why our design team has taken care and sympathetically incorporated the historic façade into the design.”

The designs include a three to five storey building housing 49 apartments with shops on the ground floor and parking.

Richard France, managing director of Oakgate, added: “The Castle Gateway area is one of the last places in city centre in need of regeneration, and these plans will be a catalyst to significantly improving the area and finally delivering this key site.”

In a separate scheme, York-based developer Northminster is waiting for planning permission to build a new hotel on the site of the Polar Garage and NCP car park further south on Piccadilly. Banana Warehouse is opposite the old Reynards Garage site, where Spark: York has planning permission for a street food and start-up business hub.

A public engagement event next week will give people chance to learn more about the new plans.

A consultation session is being held on Tuesday, July 4 from 3pm to 7pm at the Hilton hotel on Tower Street.

Visitors will be able to see the plans and ask questions of the development team.