Two controversial multi-million pound town centre projects look to have the all clear to go ahead after an appeal against a compulsory purchase order was rejected.

Thetford & Brandon Times: Images of the proposed new Thetford bus interchange on Minstergate. View from the junction of London Road and St Nicholas Street looking south-west. Image: LSI ArchitectsImages of the proposed new Thetford bus interchange on Minstergate. View from the junction of London Road and St Nicholas Street looking south-west. Image: LSI Architects (Image: Archant)

Last year, Norfolk County Council proposed a compulsory purchase order (CPO) of the former Cosy Carpets building in Minstergate, Thetford, as part of its plans to build a new bus station for the town.

Owner Nolan Guthrie appealed against the CPO and planning inspector, Julia Gregory, held an inquiry into the deal on June 4 this year.

In a report released on Friday, she turned down Mr Guthrie's appeal, clearing the way for the bus station to be built.

The news also allows Breckland Council to continue with its plans to turn the current bus station site, off Bridge Street, into a leisure complex, with a hotel, restaurants and cinema.

Mr Guthrie, who has owned the building since 1991, objected on the grounds that the site was unsuitable for a bus station, that there were alternative sites, that no beneficial use had been identified for the Grade II listed warehouse on the site and that there was 'no compelling reason' for the CPO to go ahead.

He also said he would like to build a budget hotel on the site, having been granted planning permission in 2002 which has since expired.

But Ms Gregory found that the county council's studies in developing the plans had established that the scheme was beneficial to Thetford.

Her report said the current bus station had 'inadequacies' and that a full public consultation process had been carried out throughout the development of the plans.

It stated that the work would secure the renovation of the listed building, which has been derelict since 2001.

Moving Thetford Forward will release just over £3.1 million for the project, according to the report.

Mr Guthrie said the result was 'expected'.

'The site is not a good one. They are talking about spending more than a million pounds to fix the building and I know I can do it for £250,000.

'What's more, when I tried to fix the roof, I was stopped because I didn't have a scaffolding permit. It doesn't make sense,' he said.

Mr Guthrie now has six weeks to decide whether or not to appeal against the decision, an option he said he is considering.

The county council said it hopes to start the work in April 2014.

Chris Skinner, solicitor for Norfolk County Council said: 'There was strong objection from one of the landowners and it's good to see the compelling need for the project to go ahead.

'Not only will this scheme see improvements to the bus interchange but it is going to ensure the restoration of an important derelict building.'