ONE of the biggest retail development schemes taking place in the North of England will transform a shabby corner of York into a bustling shopping centre.

Ambitious proposals to bring supermarket giant Morrisons to Foss Islands Road in the middle of a multimillion-pound 14-acre retail development have been revealed.

Hundreds of jobs are expected to be created, as businesses join the scheme which developers believe will stimulate further growth along the eastern boundary of the city.

A new link road connecting James Street, Hallfield Road and Heworth Green will be created to divert traffic away from Foss Islands Road, as well as extra bus and cycle routes to the city centre.

But Green councillors have expressed their concern about the combined affect on traffic levels of the development and a residential scheme proposed for the nearby Heworth Green gas works site.

Steve Galloway, City of York Council leader, welcomed news that one of the city areas which councillors are "least proud of" was set to be redeveloped.

"The Foss Islands Road area badly needs new investment, and the sale of the council depot site will allow us to move the commercial services organisation into purpose-designed facilities, which should improve their efficiency and effectiveness," he said.

Richard Tovey, of The Gregory Group, said the development is one of the "largest food and non-food development schemes proposed in the North of England".

He said: "This area of York is one of the most significant sites in the city in need of regeneration. Our investment will dramatically improve the appearance of the area and provide the major added benefit of a new link road."

Andrew D'Agorne, of York Green Party, said: "This development is clearly aimed at car users and part of the debate over its approval will focus on whether people can be persuaded to use other forms of transport."

A modified planning application was submitted to City of York Council to include the food store, after WM Morrison signed an agreement to "anchor" the proposed retail park. Planning permission already exists for part of the site.

The first phase of the development, which will see the council works depot and household waste site relocated to James Street, could begin as early as 2005, with shop doors opening in mid-2006.

The development will also join a proposed link road between Layerthorpe and James Street and complete the cycle path between Haxby, Osbaldwick and the city centre. Improvements will be made to Foss Islands Road as part of the plans.

Updated: 10:43 Thursday, February 12, 2004