A MASSIVE regeneration project in York city centre will create "one of the most significant and beautiful developments in Europe", its designer claimed as councillors supported the £150 million scheme.

But an opponent said the proposals for Hungate included buildings that were too high and a layout that was too dense. He feared future developers would use Hungate as a benchmark.

Though members of City of York Council's planning committee voted ten-five in favour of it yesterday, the proposed redevelopment must get the backing of the Secretary of State before any work can begin on the ten-acre site off Stonebow.

The proposal involves 720 homes, a landmark office building, new shops and bars, a focal community building, a new bridge over the River Foss, and a continental-style riverside piazza.

If given the final go-ahead for the scheme, the developers, Hungate (York) Regeneration Ltd will also contribute £3.3 million for archaeological work on the site, £1.65 million towards road improvements, and almost £1 million towards local education.

At last night's meeting, John Thompson, town planner and designer for the scheme, said the project would be an "exemplar of European urbanism".

"This will be one of the most significant and beautiful developments in Europe when it is finished, and York will be proud to have it," he said.

Brian Luker, of Hungate Community Trust, also praised the proposal which, he said, would bring back to the city a forgotten area.

But Peter Brown, of York Civic Trust, said the buildings were too high, the layout was too dense, and there was not enough open space.

He said: "If we approve five or six-storey buildings on this site, all other developments coming forward in the future will use that as a benchmark."

Phil Darcy, of Crosby Homes Yorkshire Ltd, which along with Evans Property Group and Land Securities makes up the development group, said he was delighted with the committee's decision.

He said: "This is an exciting mixed-use regeneration scheme that will breathe new life into a rundown area of York, and see the creation of an urban neighbourhood that will provide new homes, new work spaces, community facilities and public open spaces within the city walls, while also being a major focus of archaeological investigation and discovery."

Because the proposal is a departure from the 1956 Development Plan, the council cannot grant permission for the scheme. Last night's decision means they are "minded to approve" it, but the Secretary of State will have the final say.

Updated: 10:23 Friday, July 29, 2005