The company hoping to turn the Foss Islands Road waste disposal site in York into a major shopping centre beat off bids from four other applicants eager to develop it for retail.

Harrogate-based Gregory Properties Ltd has offered an undisclosed sum, believed to be several millions of pounds, for the site currently used as the City of York Council-run dump for household waste.

They beat off bids from companies including WM Morrison supermarkets, a chain known to be keen to open a store in the city.

The area is now earmarked for a shopping centre offering 100,000 square feet of retail space which the Evening Press has learned would be worth £23 million when fully developed.

A council spokesman said: "Some of the money raised by the sale of the site will be going towards the relocating of the dump that currently occupies it."

The Foss Islands waste site is planned to be moved to the nearby Phoenix Business Estate in James Street.

It is thought interest in the proposed shopping centre has already been shown by large chains including Courts furniture store, but developers said it is too early to release details.

Richard Tovey, development manager for Gregory Properties Ltd, said: "We have had initial discussions with certain retailers but, at the moment, we are working on getting the project right and obtaining planning permission."

City of York Council planners are expected to consider the proposals in October.

Foss Islands Road is becoming a vibrant retail centre, with stores including Halfords, Office World and the Majestic Wine Warehouse already operating.

Former Lord Mayor of York, Councillor Derek Smallwood, who represents the Walmgate ward including Foss Islands Road, said he still hoped to see a supermarket serving the city centre from the site.

He said: "I would welcome a supermarket back into the city centre and I am still hoping we can have one at the Foss Islands site."

A council spokesman said: "As far as planning matters go a supermarket would be suitable in this sort of development, but it is up to the developers what they want in there and a supermarket would want at least 50,000 square feet, which is half of the space."

A spokesman for Morrisons said they did not want to discuss any development plans.

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