A DECISION on whether the next stage of a stalled city-centre development in York can go ahead is set to be made early in the New Year.

Plans for the second phase of the £130 million Hungate scheme were submitted to City of York Council in September after the project had ground to a halt amid the recession.

Hungate (York) Regeneration Ltd’s application includes a five and six-storey block containing 195 homes and a commercial unit for shops, restaurants or bars.

If approved by the council, the work would begin the overall 720-home project, where the first 162 apartments and houses were completed in 2009.

The council was originally expected to debate the scheme before Christmas but it is now likely to be decided in early 2014.

Project director Richard Cook said: “Over the past year, we have conducted rigorous discussions and consultations with the council around the viability of developing this key strategic site.

“We hope these discussions will result in a satisfactory conclusion in the new year, which will allow us to bring forward the next phase of the Hungate development.”

The entire scheme may not be finished until 2024. The second phase will consist of 99 one-bedroom, 80 two-bedroom and 15 three-bedroom apartments around a central courtyard.

There will be less commercial space than originally intended because of the economic downturn. There will also be 78 car-parking spaces and 156 cycle-parking spots.

Hungate (York) Regeneration Ltd - a partnership between Lend Lease, Evans Property Group and Land Securities – has said the empty land could have a temporary use before being fully developed.

Ideas include a community garden, festival and events space and as the site for a “pop-up hotel” when the Tour de France comes to York next July.