Pub chain Wetherspoons will create the facility at the former Baird's Department Store after approval was granted for a new lease deal by the council's Housing and Technical Resources Committee.
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Features include developing a new 13-bed hotel, as well as a restaurant, a public house and a coffee bar.
The lease agreement is subject to Wetherspoons being successful in obtaining all necessary, planning, building and licensing consents it will require for the site.
Cllr Josh Wilson said: "This proposed development will not only bring this prominent property back into productive use it will also create a driver to encourage more people to visit the town centre."
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