MOVES to sell a prime York commercial location that is set for radical redevelopment have taken a step forward.

Councillors have approved terms for the sale of the Foss Islands Road depot and have given officers authority to create a conditional agreement for the development of the site.

It is expected that an 82,000 sq ft supermarket, a 75,000 sq ft bulk goods retail space, a tyre and exhaust centre and a 4,000 sq ft diner will be built on the site.

The Evening Press reported earlier this week that the supermarket giant Morrisons, owned by North Yorkshire multi-millionaire Sir Ken Morrison, could be interested in leasing the site.

Any redevelopment will include the relocation of the council's works depot and a new, bigger household waste site and provision of a recycling site elsewhere.

Council leader Dave Merrett said the decision "sets the clock ticking".

Updated: 12:03 Thursday, December 19, 2002