A PART of York died today as Terry's chocolate factory finally closed down.

A confectionery tradition stretching back to 1767 came to an end as production of Chocolate Orange moved to Poland, with the loss of 40 remaining jobs from what was once a 300 plus workforce.

But the city was already looking to the future as it emerged that the factory site has gone on the market - and that 100 would-be developers from all over Britain have already expressed an interest.

Offered for sale freehold with vacant possession, it is being branded as "the best mixed use development opportunity in Yorkshire."

Agents DTZ Debenham Tie Leung are not giving a guide price, but a spokesman was sceptical at one property consultant's suggestion that it could be worth more than £100 million.

The site's future will be guided by a development brief, which was approved in draft last night by City of York Council's planning committee and will now go out to public consultation.

The brief suggests part of the site might be suitable for conversion to a landmark hotel and conference facilities, or for use as a tourist attraction, administrative headquarters or science units.

Councillor Richard Watson said after the meeting: "The main issue is that we're looking for this site as essentially to be for employment purposes. It's a premier site for employment."

Other councillors expressed concerns about flood risks and developers building houses on the site.

Council leader Steve Galloway said new sports facilities, Science City-type jobs and leisure attractions could all be integrated into a sustainable community on the site, and the City's first "live/work" units could be created there. "The 1920s buildings have been listed and will form the centrepiece of any new development on the site," he said.

York MP Hugh Bayley said: "It's a desperately sad day for the city when a company that has been here for 238 years closes."

Former union shop steward Vic Botterill, who has now found part-time work for the GMB union, said: "It's a very sad day. It's the end of an era. It was a good place to work."

Terry's American parent company Kraft revealed today that more than 80 per cent of people who had left the business so far had found alternative employment or taken early retirement.

A company spokesman said: "Closure of the Terry's factory gates this month marks the end of 238 years of Terry's history in the city." The company revealed it had reached agreements with the Borthwick Institute and the York Museums Trust to ensure the safekeeping of thousands of items from the Terry's archive, collected at the site over the years.

See today's Evening Press for special souvenir supplement

Updated: 09:12 Friday, September 30, 2005