Birmingham City Council (BCC) has unveiled new plans for the construction of the city's first urban park for 125 years, despite missing out on Lottery funding for the scheme two years ago.

The council has now decided to fund the £11m project itself, which will see the creation of an 8-acre (3.2-hectare) area of parkland between the city's Moor Street railway station and Eastside Locks. Recreational space, formal gardens and water features are included in the plans for the park, as well as areas for special events, and it is also hoped that the development will lead to further private sector investment in the Eastside area.

A full business case for the scheme, designed by architects Patel Taylor, is expected to be submitted to the council later this year, with a view to starting work on site in early 2010. It is anticipated that the new park could be completed by the end of 2011. BCC leader Mike Whitby said: "The new park will provide a cornerstone for the wider regeneration of Eastside, a key element of the Big City Plan, encouraging more people to live, work and enjoy both the area and wider city. It is part of the £6bn of public funded projects that will transform the city over the next decade.

"Alongside headline developments such as the VTP Tower, new Birmingham City University campus and Masshouse, this project will be key to the total transformation and regeneration of the area." Mick Laverty, Advantage West Midlands chief executive, added: "Working in partnership with Birmingham City Council, plans are already becoming a reality as the remaining demolitions necessary to deliver the City Park are due for completion by mid summer 2009.

"The City Park is a key element in the wider Eastside development and will soon be grassed over- creating a canvas for the city to implement a design of international standards." In 2007, the council was unsuccessful in its attempts to secure £25m for the City Park project from the National Lottery's Living Landmarks' fund.