Bradford's former Odeon cinema will be demolished - but not until the developers can prove they have the money and tenants to ensure its replacement will be built.

Bradford Council is set to sign a legal agreement with developer Langtree Artisan in a bid to prevent another Broadway-style hole in the city centre.

The decision followed a lengthy and often heated meeting yesterday when the members of one Council committee gave consent for the historic building to be razed and passed the latest designs for the key site.

Langtree Artisan will have to wait for confirmation from the Government before the planning permission is official.

But its £40 million New Victoria Place designs for a mixed use of the site cleared the penultimate hurdle by four votes to three.

Five of the seven councillors voted to demolish the Odeon building.

The process of pre-letting the development of offices, apartments, a hotel and a restaurant will now begin and further design details agreed before demolition can start or any building works take place.

Langtree's director Simon Peters said: "This is a landmark decision and the right decision to provide the catalyst for the regeneration of Bradford. The project team has worked hard to create a viable scheme that is deliverable, iconic and beneficial to all Bradfordians.

"We will now work on the detailed designs and engage with those who have expressed an interest in being a part of New Victoria Place.

"We're confident that we can deliver a scheme that local people will ultimately be proud of. The architecture is underpinned by sustainable principles and we're committed to delivering an inspiring and innovative new scheme that represents Bradford's future whilst respecting its past."

The meeting of the Council's regulatory and appeals committee, which lasted for most of the day, saw councillors taking last-minute legal advice before agreeing to the designs. A number of members had initially expressed concerns over whether the plans fitted in with the neighbouring listed Alhambra.

English Heritage had objected to the previous designs for the site, but was convinced by Langtree Artisan's changes, saying that the benefits of the new scheme outweighed the loss of the iconic towers.

Speaking after the decision, Mark Nicholson, of the Bradford Odeon Rescue Group (BORG), said members were disappointed that the matter had gone against them, but called on the Government Office for Yorkshire to call in the decision.

He said: "It's a fresh disappointment but while it is standing we will keep fighting."

Mr Nicholson and BORG chairman Norman Littlewood had both spoken out during the meeting against the conservation area application to demolish the 1930s building and also against the New Victoria Place designs.

They claimed the costs of repairing and refurbishing the building had been greatly exaggerated by the developers and that further leisure uses for the Odeon had not been fully explored. "It's our duty to take advantage of what we already have and not allow another jewel to be extinguished, " said Mr Littlewood.

The council chamber heard vociferous objections from a large crowd of campaigners.

One said the Odeon should be kept as a concert hall and was worthy of being called the Albert Hall of the North.

Another said she thought the design competition to select Langtree Artisan was flawed. A third called for money from the sale of the Council's share in Leeds-Bradford Airport to be used to save the Odeon.

Councillor John Pennington asked how Bradford could be the UNESCO city of film and yet demolish one of the largest theatre-cinemas of its type in the country.

It also emerged that Yorkshire Forward, which bought the Odeon for £2 million in 2003, had successfully applied for a certificate of immunity from listing for the next five years, after the numerous attempts by campaigners to save the former cinema by getting it designated as a listed building.

Jan Anderson, of the regional development agency, also said they were looking at ways of sprucing the building up prior to it being demolished, which is likely to be at least a year away.

Maud Marshall, chief executive of Bradford Centre Regeneration, said the body was pleased with the decision as redevelopment of the site was a crucial part of the city's regeneration.

"A lot of time and effort has been invested in ensuring the scheme reflects the city's future aspirations, whilst complementing the richness of its architectural heritage, " she said.

"New Victoria Place will bring much needed offices, shops, a hotel and, most importantly, jobs to the city centre, as well as significantly benefiting the wider regeneration of Bradford.

"We look forward to the scheme progressing in the fastest possible way to bring a key city centre site back into positive economic use."

Gordon Carey, chairman of architects Careyjones, said: "We are absolutely delighted to be involved in this important scheme. Given the decision, we look forward to the delivery of this vibrant project for Bradford's future which will reflect the city's heritage in its architecture."

When built, New Victoria Place will combine Grade A offices, city centre accommodation, a 98-bed hotel, a restaurant, bars, cafes and community leisure facilities all centred around a central public space.