PLANS to build more than 200 homes on land owned by Nestlé are a step closer to reality as a developer steps forward for the scheme.

The masterplan for the Nestlé South site, known as The Cocoa Works, which includes 166 houses, 46 flats and 28 student flats as well as office and retail space, has attracted the interest of a developer three years after receiving outline planning approval.

The news of an interested developer has been revealed in a City of York Council report, due to go before authority's Economic & City Development committee on Wednesday, which gives an update on major development schemes in York.

Describing the Nestlé South site as being subject to a "period of relative inactivity in terms of the marketing of the site by Nestle", the report goes on to state: "A developer has now come forward with a genuine interest in producing a sensitive scheme based on the planning application previously accepted by Committee.

"Officers are working closely with the developer and have been in dialogue with Nestle to encourage and facilitate the bringing forward of the development of the site."

The council's planning department has said it cannot comment on talks with developers, while a spokesperson for Nestlé said: "Nestle is still considering its options for the site but will continue to be in dialogue with the City of York Council on future plans."

Earlier this year cabinet member for planning Councillor Dave Merrett reported to his council colleagues that investors are turning away from aspects of the approved plans.

He said there had not been a great deal of interest from developers, leading the council and site owners to consider how the site can be made more attractive to investors by increasing the proportion of more profitable residential developments.

However the most recent report, for Wednesday's meeting, states the latest developer has expressed an interest in the scheme "based on the planning application previously accepted".

The report also updates other development schemes in the city.

At the Terry's site a detailed planning application has been submitted to create 240 homes as part of for phase 2, while a detailed application is under preparation for the conversion of the former Multi-Storey Factory, the Clock Tower, the Liquor Store and the Memorial Garden for mixed use development.

Discussions over the third and fourth phase of Hungate are "proceeding", while an application for 1000 homes on the British Sugar site is "anticipated very shortly".