OWNERS of the Kingsgate Centre today won their battle to build a £50m extension to the Huddersfield town centre shopping complex.

A planning inspector has ruled against Kirklees Council – which had opposed the scheme partly on the grounds that it would undermine the council-backed Queensgate Revival project to revamp the Piazza area, New Street and the existing market hall.

The decision leaves the way clear for Kingsgate owner WD Huddersfield Ltd to press ahead with its extension, dubbed Kingsgate 2, as long as it meets a string of planning conditions.

In his 15-page ruling, inspector Trevor Cookson underlined how a battle to “sign up” major retailer Marks & Spencer lay at the heart of the planning row.

In the run up to the appeal hearing, WD Huddersfield revealed that it was in talks with the retailer to occupy the proposed department store for the Kingsgate 2 scheme.

Meanwhile, Kirklees envisaged M&S being anchor tenant for the Queensgate project.

But Mr Cookson said the council had been “misguided and naive” in rejecting Kingsgate 2 because it had based its own Queensgate Revival scheme on M&S being the anchor store.

And he added: “By the time the rather complex Queensgate scheme has been fully resolved and development completed, it is highly likely that other suitable retail anchors will have emerged in the retailing world.”

Mr Cookson said there was evidence that both the Kingsgate extension and the Queensgate Revival could go ahead to meet Huddersfield’s future shopping needs.

The Kingsgate plan calls for a 120,000sq ft extension to the Kingsgate centre to provide a 75,000sq ft department store and six other shops – four of them trading as retail outlets and two are designated as a restaurant and cafe.

Centre bosses say the extension could be ready to open in September, 2011.

The proposal includes a new single-level trading mall with a two-level department store linked to the existing centre and the centre’s car park.

There will also be 190 extra parking spaces to bring the total number of parking spots at Kingsgate to 1,000.

The development covers the service yard and rear entrance to the Kingsgate shopping centre, the 1960s office building Oldgate House, Wildcats night club, and the former Palace Theatre, latterly Shout nightclub.

Mr Cookson said Kirklees opposed the extension plan on the grounds that it would hit the “vitality and viability” of the town centre; that it would be detrimental to nearby listed buildings in the town’s Conservation Area; that it would pose traffic problems and that it would have an adverse effect on residents.

But Mr Cookson said a Kirklees Council-commissioned report in January this year said Huddersfield needed “a major retail development in the town” given estimated growth in population and consumer spending. He said it was clear that Kingsgate 2 would help meet some of that need.

He said the scheme sought to “extend proportionately in relation to Huddersfield town centre an already successful shopping development both in terms of size and function”. And he added: “I consider it to be a sensible and rational extension to the main shopping area.”

Mr Cookson has attached 18 conditions to be met by Kingsgate owner WD Huddersfield Ltd, including ones to improve the appearance of the proposed extension, provide an extra entrance and exit for shoppers on foot and restrict delivery hours to reduce disruption for residents.

Mr Cookson said the developer would also have to allow archaeological excavations before beginning building work given the historical importance of the Oldgate and Kirkgate area which forms part of the site.

Peter Everest, managing director of WD Huddersfield Ltd, said he was delighted with the decision, but said: “We will not comment further until we have fully scrutinised it and spoken to our partners and shareholders.”

Clr Ken Sims, Kirklees cabinet member for regeneration, said the appeal decision did not alter the need for major regeneration of the parts of the town centre covered by the proposed Queensgate development.

Those plans include a new library, art gallery and information centre, a three-storey department store and additional retailing, 100-bed hotel, 100 flats, an improved new market hall, bars and restaurants, up to 900 parking spaces and improved public and open areas.

Said Clr Sims: “Clearly, the decision of the planning inspector to uphold the Kingsgate appeal will have an impact on Queensgate, and we will need to assess that in the coming weeks.

“However, it does not alter the fact that this important part of the heart of the town centre is badly in need of regeneration. The Kingsgate extension site is isolated from the core of the town centre and benefits the existing shopping mall. The key purpose of Queensgate is to revitalise, regenerate and benefit a significant part of the town with a package of proposals – of which more shops is just one of the many features.”