A £23 million transformation of the area around Selby Railway Station which has been approved by councillors will put the town “on the map”, a meeting was told.

The Selby Station Gateway project will see the creation of a new station building, a public plaza, better cycling and walking routes and improvements to Selby Park.

A key part of the scheme involves the demolition of Selby Business Park to make way for the plaza and give visitors to the market town better views of the historic abbey.

New shelters will be added to the bus station and the Railway Club will be demolished to allow the station to be reconfigured. The 1960s railway station building will also be demolished to make way for a modern replacement.

A new pedestrian and cycle underpass will be built under Bawtry Road, while a new public space will be created at the disused wharf on the River Ouse.

Segregated cycle lanes, wider footways and one-way traffic will be introduced at various points between Ousegate and Shipyard Road and a new car park will be built to the east of the station.

It’s part of Leeds City Region’s Transforming Cities Fund (TCF) – a £317 million programme of transport infrastructure investment secured as part of the West Yorkshire devolution deal. Similar station gateway projects are planned in Skipton and Harrogate.

TCF’s Tania Weston said the project would be “truly transformative” for Selby, the site of Yorkshire’s first railway station, which opened in 1834.

Cllr David Buckle, executive member for communities and economic development, said: “At the moment you come out of the station and it’s not very welcoming facing the dated business centre.

“After this work, you’ll come out to the plaza with stunning views of Selby Abbey – it will put Selby on the map.”

But Lee Addy, a leaseholder at Selby Business Centre for a decade, said the council had backtracked on commitments to protect businesses based there.

He said only one business had moved, with no financial help, and said remaining businesses faced “unworkable choices” or eviction.

“It’s just really hard to accept with a project like this that’s got millions and millions of taxpayers money that this hasn’t been given the respect or serious thought it deserves,” he said.

Business would “be left with no choice but to fight the council on many fronts”, he added.

Cllr Buckle said: “This is not true. Council officers are working very hard to identify areas for the tenants to move into suitable units in the Selby district area.”

Councillors also raised concerns about banning cars from the canal bridge, which Cllr Stephanie Duckett called “ludicrous”.

Cllr Ian Chilvers also called for the “immaculate” steam engine mural in the now empty Railway Club to be rescued as it was “part of Selby’s heritage”.

The plan passed by a unanimous vote of the Selby District Council planning committee on Tuesday.

Cllr Charles Richardson said: “This project is a significant investment in the town from central government which will regenerate many parts of the town, not just the station.”