NEWPORT'S former art college is to be turned from an arson-plagued eyesore into a block of luxury flats.

Plans to restore the derelict listed building were turned down last November because of inadequate car parking.

But the council finally agreed to approve the transformation of the fire-damaged building at Clarence Place although it is still concerned about where extra cars will go.

Developers want to build 63 flats - mostly one or two bedroom - with a communal swimming pool, gym and sauna.

Council leader Bob Bright said parking was a concern but described the college as a "lynchpin" in the city's regeneration plans.

Councillor Bright added: "This is the last chance saloon. If we don't grasp this opportunity the building may be lost."

Councillor Ray Truman said: "It's the biggest eyesore in Newport and it needs to fit in with the plan for city centre development.

"I see young people getting in there and often setting fire to it. It's a very unsafe building. This is a marvellous opportunity."

It is hoped the art college will overlook a riverside plaza proposed by regeneration group Newport Unlimited.

The plaza could mirror a similar square across the Usk outside the market.

Last November councillors said the flats would put the area under too much car parking pressure.

The number of spaces being offered has not changed in the new plans. Developers are proposing putting 17 spaces in the courtyard, 13 on St Vincent Road and Rodney Road, and 33 spaces in the multi-storey.

But after months of talks developers have now secured a 99 year lease with a review after 15 years on the multi-storey spaces. The previous plans had a less secure three-year review.

Councillor Chris Jenkins, of the surrounding ward of Victoria, said: "Residents are very concerned about this going ahead. Those two roads are little more than side streets. They can barely keep up with resident parking."

Architect Michael Merritt said: "We're very pleased to have a building with a more positive future that will be better for the area. It's a building worth keeping."

Five councillors voted against the plans at yesterday's full council meeting.

The council have attached a string of legal requirements to ensure developers stick to their parking plans, increase security in the multi-storey car park, and contribute towards increased traffic warden patrols.