Plans for an out-of-town shopping centre have successfully fought off a legal challenge from businesses in Colchester – while plans for a five-restaurant town centre development have been unveiled.

Tollgate Village in Stanway, a proposed retail development and cinema, had twice been refused planning permission by Colchester Borough Council.

Developers Tollgate Partnership Ltd (TPL) won at a planning appeal, decided by the Secretary of State, but a group of town centre businesses launched a challenge at the High Court.

A judge threw out the review last month, but the group then asked for the appeal to be heard again before a specialist planning judge.

Yesterday The Honourable Mr Justice Ouseley again dismissed the application, and awarded costs against Fenwick and Lion Walk Property.

The decision means work could now begin in the New Year.

Daniel Watts and Jayne Gee, TPL directors, said: “We are extremely pleased with this decision. After years of unnecessary delays, we are looking forward to starting work on Tollgate Village in 2018.

“Our growing borough has waited long enough for Tollgate Village’s jobs, facilities, investment and much needed road and infrastructure improvements.”

Meanwhile an artist’s impression has been unveiled showing how a revamped St Nicholas Quarter could look just off Colchester High Street.

The East of England Co-op has planning permission to restore the former Sale Shop building on the corner of Long Wyre Street and Culver Street East, with five restaurants, two retail units and 24 flats.

Property consultants Jamieson Mills have how the area could look in a document for prospective tenants, and it is understood the Co-op is offering £20,000 as part of the development to overhaul the public space.

Tim Young, borough councillor for business and culture, said: “I think this scheme from the Co-op is great news.

“That’s the side of town that does need developing and I think the Co-op has come up with a really good scheme.”

The development would add to plans revealed earlier this month for The George Hotel to revamp St Nicholas House, while around the corner in Queen Street the former Keddies store is being replaced with a Curzon cinema – and two food outlets.