Plans to build flats, shops and a hotel on Central Promenade near the Midland Hotel were submitted to Lancaster City Council by developers Urban Splash.

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New Art Gallery director Stephen Snoddy says the venue had 175, 000 visitors in 2011 and that new flats, shops and a hotel had now been built nearby.

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Flats and shops will also be built on the site.

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Three years ago plans were made to remove the Esplanade car park and replace it with offices, flats, bars and shops.

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"A middle section of a row of shops, with flats above, has completely collapsed, " a spokesman said.

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The original proposal included provision for 400 flats, a hotel, restaurant and leisure facilities, shops and offices, as well as a new town square and parking for 1, 000 cars.

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