More than 80 businesses were told today their premises would be razed to the ground to pave the way for a vast £200 million shopping scheme in Bradford.

Bradford Council announced the long-awaited development agreement had been signed with the Forster Square Development Partnership for the massive scheme, which means entire streets are expected to vanish in two years.

There are plans to replace them with a complex containing more than 60 shops, two public squares, a cinema and 1,200 parking spaces.

An entire new road scheme would be built, with the massive upheaval of diverting all mains services throughout the area. Official letters, hand delivered to businesses today, say it will be necessary to bulldoze the entire 16-acre site, including part of Broadway, Hall Ings, Forster Square and Petergate.

The businesses are being told the developers will now negotiate to acquire the properties and compulsory-purchase orders, where only the value of the land is paid, will be needed if agreement could not be reached.

The companies would get compensation and the developers say everything possible would be done to relocate them in the new malls or elsewhere in the city.

Gerwyn Bryan, for agents Dunlop Heywood, said the company was already negotiating with key national retailers wanting to move in.

Compulsory-purchase orders would have to be confirmed by Environment Secretary John Prescott and objections could lead to public inquiries. The acquisition of properties is expected to take about 18 months and the consortium, led by Knottingley-based Caddick Construction, says it would then take six months to bulldoze streets.

The scheme is designed in two main blocks. The block between Hall Ings, Well Street, Forster Square, and Market Street/Charles Street is planned as a two- storey shopping centre with malls containing about 60 shops forming a U-shape.

There are proposals for a multiplex cinema and a 640-space car park, accessed by a spiral ramp from Hall Ings.

The other block, to the north of a realigned Cheapside, would have a 610-space six-storey car park. It includes three large shops and a fitness centre.

Today Richard Weatherhead, director of Forster Square Development Partnership, said: "We are now moving to the next critical phase. We are extremely keen to co-operate with tenants who will be displaced to ensure they can be relocated either in the development or at alternative locations."

Executive member for the economy Councillor Simon Cooke said: "This is tremendous news for the city. It provides a perfect opportunity to reverse the slow decline of Bradford as a shopping centre and win back all those shoppers who have deserted the city."

Council leader Councillor Margaret Eaton, pictured with Coun Cooke and an artist's impression of the scheme, said the scheme was a massive boost for Bradford.