Multi-million-pound plans to revamp a controversial city centre building have been rescued after a planning row was resolved.

High Point block is earmarked to be turned into premium apartments and offices.

But, as reported in the Telegraph & Argus last week, the plans were threatened by a dispute between the new owner Manoj Aggarwal and Bradford Council.

The wrangle centred around conditions imposed by the Council's regulatory and appeals committee when it granted planning permission earlier this month.

The company said the conditions - including the provision of some lower priced, affordable housing - would add hundreds of thousands of pounds to the cost of the development.

But after months of negotiations, private discussions have led to an agreement in which Mr Aggarwal will supply affordable housing in what he calls a "substantial gesture".

The deal will pave the way for work to begin in the next few weeks, to be completed by 2007.

Regeneration guru Richard Morris, who has been involved in the redevelopment of Manchester for 15 years, was brought in to settle the dispute.

The block, which has been said to be an eyesore for decades, was built by Yorkshire Building Society in the 1970s.

Mr Aggarwal said: "Throughout the difficult negotiations over recent months, I have always maintained my belief in the future of Bradford. High Point is a major project, which will pave the way for other potential developers to invest in the city."

A Bradford Council spokesman said: "We were keen to ensure that this major residential development provided a substantial sum of money towards affordable housing in this area of the district. We are delighted that the developer has done this."

The Council is currently working with consultants on a policy covering provision of affordable by developers in the city.

Proposals are expected to be published in the new year and would be built into all new planning applications.

But as reported in the T&A this week, senior planning officer Stewart Currie said a number of developers had already agreed to do it voluntarily in schemes including Mill Street and Thornton Road where apartments are being created.