MULTI-million pound plans to turn an “eyesore” derelict bus garage in Colchester town centre into new business units have been approved.

Colchester Council’s plans will see at least 12 digital and creative workspaces created over four floors inside the former First depot, in Queen Street.

Plans also include a café and an arcade-style walkthrough from Queen Street to a new public square behind, being created as part of Alumno’s controversial student flats development.

Funding for the £4.7 million project will come from the South East Local Enterprise Partnership and the Government’s Towns Fund.

David King, the council’s business boss, said works are set to start this summer and be completed by summer 2022.

He said: “We are pleased to see plans moving forward as, unlike some other schemes for the town centre, this seems to have a large degree of support.

“It will make a difference to the townscape and it will make this part of the town centre more attractive.

“It will give people hope if they are looking for an opportunity to grow their business and hopefully help some remain in Colchester.

“It is a bit of an eyesore at the moment and people do make judgements about where they will shop depending on what town centres look like.

“There are several other developments on their way for the town centre, including at St Nicholas Square and the revamp of St Botolph’s roundabout so this is more good news on regeneration for Colchester.”

The site is the old home of Colchester’s famous Theatre Royal, which was destroyed by a fire in 1917 whilst the last buses left the site in 2015.

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The ground floor of the development will feature a creative hub, as well as a café and bar, while the upper floors will be home to office space.

It is hoped the arcade area can be used as a performance space in conjunction with the new café.

Archaeological investigations have taken place on site.