CITY of York Council looks set to press ahead with relocating up to a thousand staff - based in offices across the city centre - into one purpose-built site.

In a separate development, the authority is planning to sell the historic De Grey Rooms, in St Leonard's Place, in a move which could lay the foundations for a new "cultural quarter".

Councillors will be urged later this autumn to agree in principle to moving office staff out of a number of buildings, including the major complexes in St Leonard's Place and George Hudson Street/North Street.

Council leader Steve Galloway said the aim would be, if possible, to relocate to a single building within the city centre.

One single reception area would act as a one-stop shop, dealing with all queries - from planning and environmental health to housing benefits and council tax payments.

Coun Galloway said the authority recognized the importance to the city centre economy of keeping staff in a central location, as well as the transport benefits.

Possible locations for new offices might include the Hungate site, York Central or the Castle/Piccadilly area. But he said that if a suitable city centre location could not be found, possible alternatives might include sites becoming vacant further away, such as the Terry's factory site in Bishopthorpe Road, which closes down next year.

He said the proposal to relocate had been recommended by consultants who had examined the situation as a number of council buildings came towards the end of their leases.

But the historic crescent building in St Leonard's Place is owned by the authority, and its sale could raise capital to help meet the costs of the new headquarters.

He said the old building might be suitable for conversion to residential redevelopment, or perhaps to a hotel.

Kevin Hollinrake, of Hunters estate agents, said various factors would influence the value of the building, but he would expect such a site to fetch in excess of £3 million.

The future of the De Grey Rooms, just along the road from the council offices, has long been clouded in uncertainty. Once a popular dancing venue, it has been underused for years, and the Tourist Information Centre on the ground floor is planning to move away.

A report to the council executive says that the authority has recently received a formal offer for the Rooms.

Another report reveals that Impressions Gallery - which may need to move out of its premises in Castlegate - has been in discussions with the Theatre Royal about a possible joint development of the De Grey Rooms site.

It says plans to develop the Rooms alongside the theatre have begun, with Arts Council England: Yorkshire supporting the move in principle.

"This would have the benefit of laying the foundations for a cultural quarter in the city based around Exhibition Square," states the report.

Updated: 10:13 Wednesday, October 13, 2004