PLANS for the multi-million  pound redevelopment of Exeter  Bus Station have taken a major  step forward after the city council revealed Princesshay owner  Land Securities has been asked  to rejuvenate the site.

The developer has previously  spoken to department store giant John Lewis about a possible  move to the bus station.

And the council has made no  secret of the fact that it wants to  see the store in Exeter.

Retail development at the site  is likely to bring major investment and hundreds of new jobs  to the city.

But Stagecoach said it was not  yet clear whether the bus station would have to relocate following redevelopment.

Under the deal, due to be  agreed by councillors next  week, Land Securities would  draw up proposals for the site  and would be granted a long-  term lease by the council, which  would still own the freehold.

The developer would then pay  for the redevelopment of the site  and lease units to retailers.  Land Securities will now draw  up a feasibility plan and the  council will have the final say  on any proposals.

The scheme would be  mixed-use, which could involve  a range of shops as well as a  flagship anchor store, leisure  use and possibly new housing.

Land Securities has been in  talks with John Lewis about the  possibility of creating a store in  Exeter for some time.

The Echo recently revealed it  had expressed concern over proposals to return Paris Street to  two-way traffic, claiming the  move could hinder prospects for  attracting the department  store.

Land Securities spent £225m redeveloping Princesshay into an  award-winning retail and residential quarter after demolishing the existing post-war buildings.

 Late last year the developer  sold 50 per cent of its share in  Princesshay to Crown Estates  — technically owned by the  Queen — for close to £100m.

For the last two years the city  council has been carrying out a  range of background studies  from looking at the potential  height and size of new buildings, to possible archaeological  remains, at the site.

It also looked at future transport and parking requirements  and retail capacity.

City council leader Adrian  Fullam, said: “We are keen to  see progress made with this  site, which is at present not the  most attractive.

“We need a new bus interchange which is attractive for  bus users but we also want to see  a major new anchor store on the  site with a mixture of housing,  office and leisure uses to make  it a genuinely mixed use  scheme. We have thought carefully about our potential development partner and, given Land  Securities’ significant property  interests on the site and their  track record, we feel that our  best way forward is to ask them  to work with us on bringing  forward proposals for the redevelopment of this important  city-centre site.”

The council has stressed that  a detailed feasibility study will  be carried out  and there will be  extensive public consultation as  part of the process before any  firm decisions are made.

Stagecoach is in talks with  the city council with a view to  agreeing a short-term extension  to its lease on the bus station  site. The current lease is due to  expire in 2012.

Michelle Hargreaves, managing director of Stagecoach  South West, said: “The city  council has always involved us  in anything they have been doing and advised us of what they  are going to be doing, and we  welcome it. We would hope  there will still be a bus station  there and I’m sure that there  will.

“The bus station is very important to get people into the  city centre and I’m sure that it  will still be there in some shape  or form.

 “It’s too early to say whether  it will still be in the exact same  location.”

A John Lewis spokesman said  Exeter was a major retail centre  and it was monitoring what was  happening in the city.

 No one at Land Securities was  available for comment.