The council plans to improve pavements, parking and accessibility
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Almost £4m has been earmarked to be spent on the first stage of the ongoing regeneration of Leicester city centre.
Leicester's new business quarter and St George's cultural quarter will receive some of the government funding.
The projects include reconnecting the Waterside area to the High Street, creating a new park-and-ride hub in Birstall and improving Granby Street.
City councillor Patrick Kitterick said the work would make the Granby Street underpass more attractive.
In the second phase of regeneration, an additional £3.9m will be used to improve five key areas.
The park-and-ride hub will be brought forward by at least three years and the capacity increased from 650 spaces to 1000 spaces.
The pavements and crossing facilities around the cultural quarter, near St Nicholas Church, will also be improved to make the area more accessible.
Mr Kitterick said: "In the long term, it's going to cost millions over the years, because ultimately the vision for this area (cultural quarter) is to remove the Castle car park and create an open public square.
"But we recognise it's going to be done in phases."
The plans were approved at a city council cabinet meeting on Monday. The work will start this financial year and will continue over the next 12 months.
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