IT'S going to be the key which will unlock Southampton's vast economic potential.

In ten years' time, the city will have its very own "Wow" factor in the shape of the prestigious West Quay Stage Three development.

For years, city chiefs have dreamed of having an iconic centrepiece which will define the city for the next 100 years and beyond.

By spring 2005, city bosses should get their first glimpse of the exciting plans that are going to transform the city centre forever.

The figures themselves are mind-boggling. About £50m alone will be spent by developers Bravo on building the city's giant 8,000-seat arena.

Inside the arena itself, an Olympic-sized ice rink will be built. This will double as a concert venue and conference centre - the largest on the south coast. But that is not the end of the story by any means. Surrounding the arena will be three huge towers with gigantic sails perched on top which will be visible from Southampton Water.

They will provide the city with an iconic set of buildings which will define Southampton - not only for residents but also for the thousands of visitors from the UK and beyond who will flock to use the state-of-the-art facilities in the arena complex.

A 200-room hotel is due to be developed next to the ice rink, in addition to three landmark residential buildings.

In an exciting twist to the story, a permanent ice pad will be built next to the arena itself, finally bringing permanent ice skating back to Southampton for the first time in nearly 20 years.

American casino operators Ameristar are also scheduled to build a giant gaming centre next to the showcase venue.

Top international artists such as Robbie Williams, Kylie Minogue and Sir Elton John are expected to perform at the arena - billed as the most advanced in Europe - when it is completed sometime in 2007.

Next to the arena, city bosses are also planning to create a plaza, which will host open-air events such as French and German markets and performance art.

Residents and tourists will be able to stroll directly from The Bargate to the plaza on a special walkway. They will be able to relax in the plaza during the day and at night when the city's ancient walls will be lit by floodlights.

According to city council tourism boss and deputy leader Councillor Peter Wakeford, the plaza and arena are the cornerstone of the city's ongoing regeneration projects that include the northern Above Bar "arts quarter" and the planned development of Town Quay and the Royal Pier.

On Thursday city leaders will present an update on the scheme's progress. But Cllr Wakeford is in no doubt that final, detailed plans for the giant arena will be lodged by spring next year.

He said: "Personally, I put the development at West Quay Stage Three above all the other projects that are planned in the city.

"West Quay Stage Three and the ice rink are our number one priority. That is the view of the majority of members of the council as well. It is a vital part of the city that needs refurbishment. It will be iconic. Nobody else in this part of the country has an arena like the one we are planning."

Former Mayor of Southampton Jack Candy cautioned against building skyscrapers if they made Southampton less "human-scale".

"The city's assets are its parks and its open spaces. Many other cities don't have those," he said.