Southampton City Council (SCC) has launched a search for a development partner to take on the transformation of the city's former Tyrrell and Green department store as part of plans for a new cultural quarter.

At the heart of plans for the mixed-use development, which has been designed by Assael and could cost up to £50m, is the creation of a new arts complex. A hotel, restaurants, cafés and education facilities may also feature. The 0.47-hectare (1.16-acre) development site is situated adjacent to a new regional business centre, due for completion in 2010, as well as Guildhall Square, which is set to be redeveloped into a new outdoor public space.

Colin Wilkins of Savills, which has been appointed to advise the council, said: "This is a further step in Southampton's renaissance. Recent key notes for the city include the new Carnival Headquarters at West Quay III; and the well-publicised arrival of Ikea. Developers can be ensured of a good reception by the city." The deadline for interested developers to submit pre-qualification questionnaires is 9 March, before a shortlist for the scheme is drawn-up.