A ONCE drab corner of York is undergoing a £2 million overhaul to create state-of-the-art retail and leisure units.

Work has begun in earnest on the Tanner Row car park site which was once one of the city's biggest eyesores.

Moor Lane Construction, of Bishopthorpe, has been appointed by Wetherby-based owner The Oakgate Group to substantially regenerate and refurbish the site.

The work, which started after Easter, is due to finish by the end of 2006.

The award-winning car park, which has already had a major interior revamp, will be reclad in terracotta while five modern retail and leisure units are being created on the ground floor in George Hudson Street.

Talks are now well advanced for the letting of one 4,000sq ft unit.

Alison Stewart, Oakgate property director, said: "The car park has already been a tremendous success story, winning a number of safety awards.

"This latest refurbishment will make it bigger, better and brighter. It provides secure parking in an excellent location, close to the city centre, the station and the bus network.

"Meanwhile, the new units in George Hudson Street and Tanner Row will revitalise the area, which has been in the doldrums since the demise of the Safeway supermarket in the early 1990s. This is excellent news for shoppers in York.

"There is no doubt that York city centre is fighting back against out-of-town competition in the retail and leisure sector.

"We have had substantial interest in the remaining four units with McMillans nightclub hoping to extend into one of these units in Tanner Row, subject to planning permission."

The letting agents for the retail units are Lawrence, Hannah and Skelton, of Blossom Street, York.

The Oakgate Group won praise from traders in 2002 when it announced it had bought the building which included the Tanner Row public car park. This had a reputation at the time for being dark, dirty, neglected and unsafe.

Today, Tanner Row boasts a crime-free record for the past three years, and has won the prestigious Safer Parking Award, which is organised and sponsored by the police, for the second successive year.

The Oakgate Group has also given a new lease of life to Royal Parade, which is situated at the foot of Montpellier in Harrogate and features a number of specialist shops and restaurants.

Alison Stewart said: "After decades of neglect, we have restored the building, once Imperial Hydro Hotel, to its former splendour and cleverly created modern, spacious living space in an enviable location."

Updated: 10:05 Wednesday, May 03, 2006