THIS is the stunning development which will transform the old FR Stubbs Ironmongers building.

The £8 million scheme will bring a new restaurant, 18 flats and a major retailer to Piccadilly, say developers behind the ambitious project.

Boarded up since the old shop closed four years ago, speculation has abounded as to the fate of the late 19th century listed building.

The Evening Press revealed in July how seafood restaurant chain Loch Fyne was hoping to house its new eatery in the building, retaining many of the shop's traditional features.

With the company agreeing to rent the ground floor, it is hoped the restaurant will be opened early next year.

Now that planning permission has been granted, the developers behind the overall project, an Irish-based company, will transform the site over the next year.

The car park at the rear of Foss Bridge House will become home to a new building, which will have five floors from street level upwards and undercroft parking.

A 2,500 sq ft retail unit will be built, for which property consultant Blacks is hoping to find a nationally-renowned tenant.

Above the shop will be 12 flats over four floors in a scheme designed by the Thirsk-based Downes Illingsworth Partnership.

The building aims to complement the six flats which will form the conversion of the upper floors of Foss Bridge House.

The developers hope the scheme will be completed in the autumn of next year.

Andrew Hedley, of Blacks Property Consultants, said: "Obviously, with York being a city of small shops it's not too often that an agent can offer more than 2,500sq ft of retail space.

"It is expected that the retail unit will be let in advance of construction work as retailers identify the street's potential for the future and, of course the present, following Topshop's arrival (in Piccadilly)."

Mr Hedley said as the retail unit will be situated so close to bus stops and flats in Piccadilly, a convenience store would be an ideal occupier.

"The developers believe the flats will have a difference, in that they will be larger than those normally built by the major housebuilders and have a specification that will not fail to impress. I am very impressed with the building designed to fit alongside Foss Bridge House."

Updated: 08:34 Thursday, August 11, 2005