AMBITIOUS plans to transform a dilapidated corner of York into a new retail park have come one step closer with the purchase of land worth about £150,000.

City of York Council has bought a string of small land parcels which will open up space for a link road between James Street and Layerthorpe.

Construction work on the 14.5-acre complex will start after Christmas, and the retail park, which will include York's first Morrison's supermarket, is due to be completed by early 2007.

The development is also expected to include a series of shops ranging from 10,000 to 75,000sq ft, for retailers of "bulky" goods such as furniture and electronics.

There will also be a 4,000sq ft restaurant and 600 car parking spaces. The distinctive tall chimney, a familiar site on the York skyline, will remain as it is a listed building. The council's waste disposal depot will be relocated to James Street as part of the project, which will create hundreds of jobs.

The new road, which will connect James Street and Heworth Green, is expected to release pressure from the busy Foss Islands Road.

In a report John Urwin, property manager, said £3 million has been set aside for the route as part of the Foss Basin Transport Masterplan.

He said the following parcels of land were bought:

The freehold for 64 Layerthorpe was bought back from National Tyre Service (NTS) at a cost of £30,000

Barratt Homes handed over 563 square metres in Layerthorpe and Hallfield Road under a planning agreement

Sorrell Plant and Transport gave up 1,105 square metres at Hallfield Road and the Ropewalk for £1, plus costs of almost £30,000

Sustrans handed over land at Hallfield Road Bridge for £1, plus costs, after the council agreed to build a cycle path across the retail park

British Rail Board sold land at the rear of Foss Islands Depot for £1, and R Grey sold land adjacent to James Street for £85,000.

The council's executive member for resources, Coun Quentin Macdonald, pictured, and his advisory panel have been asked to note the purchases when they meet on Monday.

Updated: 10:07 Thursday, October 13, 2005