An ultra-green £100 million development on the site of an old fruit and veg market has been given the go-ahead.

Brighton and Hove City Council has chosen the Kent-based Cathedral Group to develop the area in Circus Street, Kemp Town.

It plans to transform the rundown site into a zero-carbon complex dubbed Grow Brighton which will yield 620 jobs and 180 homes and is predicted to bring up to half a billion pounds into the city over the next ten years.

A community wind turbine, roofs covered in plants, rain water collection and irrigation and a solar power plant to provide heat and energy will form a major part of the scheme.

It will also feature facilities for recycling household waste.

Cathedral's plans contain flats, offices, space for the creative industries, a new university library, a public piazza and performance space and new studios for the South East Dance agency.

Cathedral's chief executive Richard Upton said: "We're thrilled to have been chosen to develop this important area of Brighton a city with a unique character, a reputation for creativity and an unmistakable soul. Key to our proposals is a desire to create a new sustainable quarter, both ecologically and economically.

"This means we'll be supporting growth of local business through an enterprise hub and involving the community in our plans."

Scott Marshall, assistant director of economic development and regeneration at the council, said: "We selected Cathedral because they not only present a well-thought-out and exciting scheme but also demonstrated passion, energy and commitment for the project as well as the local community."

The scheme is being designed by ARUP, one of the world's leading sustainability engineering companies, and the awardwinning John McAslan architects, who designed the new De La Warr Pavilion in Bexhill.

ARUP is creating a string of the world's first "eco-cities" in China.

Work is due to start on the Brighton project in March 2007 and be completed in 2009.