THE site of an Oxford pub destroyed by fire is finally set to be built on after the city council approved a scaled-down retail development.

Land which once housed the King of Prussia in Rose Hill has lain unused since the pub was damaged by a blaze in July 2006 and later demolished.

Midcounties Co-op has owned the land since August 2005 and has submitted a number of planning applications for its development.

The latest proposal, approved by the city council’s south east area committee on Monday, is considerably smaller than previous submissions owing to the recession, the company said.

In April this year the Co-op gained permission to build a parade of four shops at the site, having previously been allowed to construct four shops and eight flats in May 2007.

However, the latest scheme is for a two-storey building with just one shop on the ground floor and offices above.

Space for 23 cars will also be provided.

The existing Co-op store will move into the new building.

General manager for retail Andy Cresswell said he hoped construction would begin as soon as possible.

He added: “We are delighted the committee has granted planning permission and look forward to starting work on the site. We’ve worked closely with the council to come up with a scheme that will both enhance the area and create valuable employment opportunities for people in the local community.”

Ashurst Way resident Stephen Richardson, the deacon of nearby Rose Hill Methodist Church, said: “It’s very positive. The site has been left derelict for some significant time and I understand the general opinion is let’s get something in rather than the eyesore it is now, and to help the local economy.

“It’s an improvement to have scaled it down as issues like parking are already a significant problem. To do away with the accommodation, even though it’s much needed, means there are less questions around where everyone will park. From what I understand it is a smaller development which also means it won’t tower above other things in the area.”

During the meeting, Rose Hill city councillor Ed Turner questioned whether the proposals might “under utilise” the site, but he supported the scheme and said he hoped to see construction begin this year.

Bill Buckingham, 88, of Court Farm Road, said: “I’m pleased. It’s about time it was done, it’s been a long time coming.

“To have another proper store down there is very handy for people who cannot get over to Cowley Centre. It would be nice if the Co-op could put a pharmacy there. I think it’s slightly a missed opportunity on their part not to have flats there as I thought that would have helped them pay for the development.”

Rowney Place resident Jodie Vallance said: “It’s brilliant something is finally happening. I think it will be great for locals.”