AN UGLY corner of York city centre is set to be revitalised by a developer's multimillion pound purchase of a huge building which includes the dark and dingy Tanner Row public car park.

Traders celebrated as The Oakgate Group announced today that it had bought the long-boarded-up former Safeways on the ground floor plus the three storeys of 255 parking spaces above it overlooking George Hudson Street - then immediately shut the facility for a major revamp.

By the time the ailing car park reopens on Monday, the Wetherby-based developers will have invested more than £3 million in both the purchase and the clean-up, with the facelift programme scheduled to continue into next month.

Building staff were this morning clearing vagrants' sleeping bags and hypodermic needles from the car park to prepare for big changes which will see better lighting, lifts for mothers with prams and disabled people, bright paint and effective security. CCTV cameras are being installed and three security staff will be hired. A timed ticket system will replace the existing pay and display.

The Oakgate Group has taken over the running of the car park from City of York Council, the leaseholder, on a three-year agreement while studying options for development of the site, which could include a hotel, shops and offices, "but whatever happens there will be an element of public car parking," promised Alison Stewart, Oakgate's property director.

There is already planning consent there for a 169-bedroom hotel, with conference and leisure centre, but, said Ms Stewart, The Oakgate Group may submit a variation of consent which could possibly entail calling for an extra storey.

She said: "Ever since Safeways closed six years ago the car park has continued to operate, but it had a reputation for being dark and dirty and sadly neglected.

"We have experience of car parks, having done the same very successfully in Barnsley, and we are expecting to significantly increase occupancy levels in the first six months. We see car parks as being crucial to the whole fabric of the city centre."

Debbie Lamb, owner of Breeze hairdressers, opposite the car park in George Hudson Street, said: "This is excellent news. The place is an eyesore, dingy and dark - not the sort of place that seemed safe to park. I expect the changes to boost trade in the area."

Puran Barr, manager at the new 104-bedroom Encore Ramada hotel and coffee bar around the corner in Micklegate, said: "We have just six spaces, two of them for disabled parkers, behind the hotel. This will now expand our options when advising customers where to park."

Nigel Thurling, of Binnington & Thurling opticians, also in Micklegate, said: "The improvement at Tanner Row will come as a relief to customers, many of whom are elderly and prefer to drive here rather than walk."

The revamped car park will be open seven days a week from 7am to 7pm, with late nights at Christmas and bank holidays.

Updated: 11:44 Thursday, September 05, 2002