PROTESTERS angry at the choice of the Union Terrace car park as the new home for Arc Light centre for the homeless say they will offer an olive branch to the charity - but still intend to campaign against a planning application on the site.

Members of the Claremont Terrace, Union Terrace and Portland Street Residents Association (CUPRA) said they were still "licking their wounds" after members of City of York Council's ruling executive picked the Guildhall car park as the preferred site for the homeless charity's 35-bed new centre.

And while the residents' group confirmed it was to press forward with objections, despite a plea from council leader Steve Galloway not to "wreck" Arc Light's dream, the group also said it had to be "pragmatic" if a planning application was successful.

President Rob Gray said: "CUPRA is still hugely disappointed at the decision, and we are still going to fight very strongly.

"We will offer an olive branch to Arc Light. If they are going to Union Terrace then we have to be good neighbours, but we will fight the application at planning, and we are still to complain to the Local Government Ombudsman. We have to be pragmatic.

"If it comes to pass, then we will try to work with Arc Light in the future. But, although we are all very subdued at the moment, it is not over as far as CUPRA is concerned."

Following the executive's decision, a planning application will now be pushed forward.

In his speech to Tuesday's meeting, Coun Galloway said that would be determined by a team of councillors who have played no part in the process.

The Press has revealed the scheme at Union Terrace is likely to cost in the region of £2.6 million, plus an extra £125,000 in cover needed for extra works.

The scheme is time sensitive, as the project is heavily dependent on about £1.6 million in funds from the Office Of The Deputy Prime Minister (ODPM).

Arc Light's current home at the Bullnose Building in Leeman Road is too small for its growing needs. A City of York Council spokesperson said: "The only funding secured so far is the £1.65 million remaining from the ODPM allocation.

"However, we will be discussing the possibility of supplementing this with funding from the Housing Corporation.

"It (the Bullnose Building) is due to be demolished as part of the development of York Central, but no date has been set for this."

Updated: 09:45 Thursday, May 04, 2006