The proposal is to create a new, vibrant and high-quality public space by demolishing some buildings, reconfiguring others and enlarging and pedestrianising St Helens Square.
The scheme has been designed to enhance and build upon the proposed development of the former Argos site for student accommodation.
Councillor Liz Colling, cabinet member for inclusive growth, said: “This new scheme will completely transform this historic part of town.
“The amazing market hall in Scarborough is a hidden gem of which are rightly proud and the square will make it much more visible to all.
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“Combined with the separate scheme to find a new purpose for the former Argos site, this is great news for our town.”
The new St Helen’s Square would be used for markets, exhibitions and performances while creating a more attractive area in front of the historic market hall.
Plans were originally drafted in 2018 as part of the wider regeneration of the former Argos building but have since been revised after feedback and consultation.
The refreshed proposals are now being submitted for planning permission to complement the recent application relating to the Argos scheme.
A new St Helens Square is an integral part of the Scarborough blueprint and town centre strategy.
One key element of the strategy is to create a high-quality network of interesting spaces and streets in Scarborough town centre.
The council’s ambition is for cohesive, characterful and distinctive public areas which have a specific purpose and link key parts of the town together.
The square would draw inspiration from Scarborough’s culture and heritage and reflect the natural landscape.
If the planning application is successful, it is hoped work will start in the next few months.