A former drugs den in the heart of Middlesbrough is set to have a major overhaul after falling into a depressing state of disrepair.

Plans to turn the ten storey Teesside House, on Borough Road, into student accommodation with shops on the ground floor have received planning consent from the local authority.

The first two floors of the building, owned by property developers the Waterbridge Group, had to be sealed in November 2002 after the site was taken over by drug users and squatters.

Metal sheeting was used to secure the building after police cleared squatters' property and removed the stolen goods

Cars parked around the base of the building were broken into regularly while staff at a neighbouring businesses complained of intimidation and theft.

One businessman, who wished to remain anonymous, said: "It's about time something was done with that eyesore. Before the owners put the sheeting up, the building was used by all sorts of people and some of us were getting quite concerned about our livelihood."

In 2002 when workers were hired to make the building safe some refused to clear out the interior because the floors were littered with hypodermic needles and squatters' bedding.

The building - which housed the offices of the former Cleveland County Council - has been empty since 1997.

Restaurateur and local councillor, Shamal Biswas added: "It has been in a terrible condition for a long, long time. It has a lot of past history with drug dealers and users and god only knows what else and it finally looks like something is going to happen.

"Borough Road is part of the Middlesbrough Regeneration scheme to rejuvenate the town centre and turn it into a vibrant place. For the ground floor any kind of business would be welcome as it would help bring additional customers to the existing businesses in the area."

A Middlesbrough Council spokesman confirmed the application for 84 student flats and retail outlets on the ground floor has already been approved by members of the authority's planning committee.

No one from the Waterbridge Group was available for comment yesterday.