Preston's bus station can be bulldozed, the government has ruled.
The 41-year-old building will not be listed, allowing it to be demolished and a John Lewis department store built in its place, subject to planning permission.
Council leader Ken Hudson said: "We are delighted that common sense has prevailed.
"The building is an eyesore and is simply not worthy of being listed.
"It is too big, expensive to maintain and does not meet the needs of modern day bus passengers.
"At least now we can focus on securing planning permission for the Tithebarn development, which includes proposals for a brand new, state-of-the-art bus station that is fitting for the city of Preston."
The decision removes an obstacle from the proposed 700m Tithebarn scheme, the future of which will be decided at a public inquiry later this year.
Richard Coppell, project director at developers Lend Lease said: "We are very pleased with the Government's decision not to list the bus station, which removes a major obstacle from the development of the Preston Tithebarn scheme.
"Our focus now will be to work with the council in order to respond to the call-in by the government."
And Preston MP Mark Hendrick said: "This is an excellent outcome for the city because this means that we can now concentrate on progressing the Tithebarn redevelopment scheme.
"The people that use the bus station can now look forward to a better, brighter design in a more convenient location which will be linked closer to the shopping and business districts of the city.
"The bus station and car park may well have been fitting at the time of its inception in the 60s but in 2010 it is tired, worn out and unsafe.
"The people of Preston deserve a better central hub to enable and encourage them to use public transport within the city.
"For many people coming into the city, either on a bus route or using the car park, their first impression of the city is formed based on their experience of the bus station."
See The Evening Post on Friday for the full story
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