A FINANCIAL deal to secure the redevelopment of Oxford’s Westgate Centre will go to city councillors next month.

Negotiations between the developers and Oxford City Council lasting more than a year have now been successfully concluded, with building work expected to begin in two years.

The package would see the council granting a 100-year lease to the developers.

The deal would also involve the city council handing over the shopping centre car parks, which would form a key part of a £330m redevelopment of the ageing shopping centre.

The revised commercial agreement will go to a February meeting of the council’s executive board. Council approval would clear the way for design work for a new look Oxford shopping centre to get under way later this year, along with public consultation.

Officers believe the planning process could be completed next year, with building work starting in 2014. The long-awaited shopping centre could then open in 2017.

The site would be developed by the Westgate Oxford Alliance Partnership, formed by the Land Securities Group and the Crown Estate – the UK’s largest commercial landowner.

David Edwards, city council executive director for regeneration, said: “We have kept our nerve in difficult financial circumstances and have negotiated a financial deal that will be recommended to the council.

“The next step would be the drawing up of a detailed legal agreement between Crown Estate, Land Securities and ourselves. When that has been signed they will begin design work in earnest.

“It is good news for the city which should have a new shopping centre, to bring major new retailers into the city centre and attract more consumers and shoppers. It will replace a shopping centre that has served the city very well, but which is dated and needs renewal.

“The council will now be working hard to ensure the scheme is high quality, with first class design. We included our car parks so we have a comprehensive scheme. Car parking and shopping go together and it makes sense to have it under a single management. We couldn’t achieve a city centre development without that.”

The scheme will include a John Lewis department store and some housing.

Mr Edwards said the scheme would be smaller than one previously proposed, but insisted a reduction in floor space would not have any major impact on the shopping experience.

He said: “It is about getting the right mix of retailers.”

Mr Edwards said the revised commercial terms negotiated by the city council would secure a long term source of income.

But it is expected that commercial sensitivity will mean the financial details will go to councillors on the executive board in a closed session.

Nigel Wild, president of Oxfordshire Chamber of Commerce, said: “If this redevelopment goes ahead, and we get John Lewis, Oxford would have something really worth coming to.There have been many attempts to redevelop the Westgate and on each occasion the deal has fallen through. If it really goes ahead this time, we say ‘whoopee!’”