TALKS about the future of a major York factory could have averted a full-scale public inquiry.

A Government hearing about the future of the Tenneco Automotive site in Rawcliffe was set to start in September this year.

Site owners had applied to replace the redundant factory, in Manor Lane, with houses.

But City of York Council refused permission because the land was earmarked for employment uses, and the landowners launched an appeal.

Now meetings between council officers and representatives of the owners look to have resulted in a compromise.

Alasdair Morrison, the council's head of development and regeneration, said: "The applicants would be willing to look again at the possibility of a more mixed land use for the site.

"This would focus on overcoming any deficiencies that currently exist in the area for community facilities, such as healthcare, local shops, recreational provision, older persons accommodation and so on."

Under the plans, the land would still be mainly used for housing.

Councillors will be asked to accept the proposal in principle when they meet on Thursday, and ask for the public inquiry to be adjourned until November.

"This would leave both parties with the opportunity to progress their case should a workable solution not materialise," said Mr Morrison.

He said it was hoped a revised plan would be ready for consideration by the council in October.

But he warned: "Obviously the appellants are unlikely to be willing to adjourn the public inquiry unless they receive assurance that members would be willing to negotiate for a better community mixed development with a predominantly housing base on the site.

"It is recommended that members agree that housing along with other community uses would be acceptable in principle on the Tenneco Automotive site at Rawcliffe and invite the applicants to submit a new planning application for the site on this basis."

Updated: 12:23 Wednesday, July 25, 2001