The £600million regeneration of New Street Station is vital to the economic prosperity and success of the West Midlands, a public inquiry heard.

Birmingham City Council, Network Rail and Advantage West Midlands, the joint developers of the New Street Gateway, are urging the Government to approve compulsory purchase orders on more than 250 properties and leases covering the 14-acre site.

The public inquiry heard 27 objectors remain, but only three, National Car Parks, Prudential Assurance and Dr Martin Purdy, a resident of Stephenson Tower, would be giving evidence in the two-week inquiry.

A solicitor representing a fourth objector, Warner Estates which owns the Pallasades shopping centre, was at the inquiry, but announced objections may be made at a later date if an agreement being negotiated falls through.

The first day saw an opening statement from developers’ representative, John Hobson QC and evidence from the city council director of planning and regeneration Clive Dutton before the government-appointed inspector Philip Major was taken on a guided tour of New Street Station.

Mr Hobson described the station as, ‘dark, dismal and unwelcoming.’

He argued the land was needed to ensure the delivery of the New Street Gateway which would create an estimated 11,000 jobs and draw £2billion in economic benefits for the region.

And he said it would create a New Street Station to rival its Victorian predecessor, replacing the 60s eyesore.

“The Gateway proposal will comprise a landmark scheme of the highest quality. It will mark the restoration of New Street Station to its place as the gateway into the centre of the city and contribute to its success and prosperity.”

The inquiry heard that the owners of the Pallasades shopping centre will not give their objections at the inquiry as they are hopeful of reaching agreement with the developer.

Mr Hobson said that objecting businesses and residents are concerned for their own future and their own place in the revamped Gateway project – rather than objecting to the design.

He added: “An active dialogue has taken place and in some cases is still continuing. It is noteworthy that, particularly in the case of commercial occupiers, there has been very limited, if any, objection to the need for the Gateway scheme. Rather the concern has been how they would individually be affected by the scheme.”

Clive Dutton said the development was the latest in a line of regeneration schemes over the last 20 years, such as Brindleyplace and the Bullring, aimed at shedding Birmingham’s ‘concrete jungle’ image.

It would increase the capacity of the station, allow easier access for all and remove the conflict and confusion between rail passengers and shoppers.

“It is my firm belief that the public benefits of the Gateway proposals, significantly outweigh the loss to private interests,” he said.

But objector Dr Purdy, an architect and chairman of Stephenson Tower Residents Association, questioned the cost of the building and the need to demolish his home rather than refurbish it.

He said: “We are tarting up the station, but getting rid of 80 people’s homes. Why do the entrance steps have to go through the Tower?”

He added that the scheme failed to deal with trains, pointing out that rail capacity does not increase with passenger capacity.