The £38 million redevelopment of the Lower Precinct is finally set to start following a deal to finance the project.

Bulldozers will move into the area to start work in the run-down area next month, Coventry City Council revealed today.

Many of the buildings in the 1950s precinct, which was the first pedestrianised shopping centre in the world, have been empty for years.

Traders were told to move out in preparation for the development, which has since been delayed many times.

But work is now set to begin after developers Arrowcroft, who recently refurbished the indoor market, teamed up with financiers Scottish Life.

The new area, which will be covered, will be completed by autumn 2001.

There will be 29 shop units, three large stores and restaurants, cafes, kiosks and a 580-space multi-storey car park.

The Co-op and C&A department stores will stay and there will be two big name shops taking space in the development.

They will be announced by the developers as early as possible to encourage other firms to take units.

Traders and tenants still in the buildings earmarked for demolition have been told that they must leave before work begins.

Plans to transform the round café in the centre of the pedestrianised zone into a hi-tech Tourist Information Centre have been ditched.

Tourism chiefs had hoped to use the distinctive centrepiece as a new outlet to sell tickets for events in the area and to show off the city’s attractions.