Appeal for £1bn city scheme ideas

York railway station will benefit from the planned development

The transformation of a derelict site in York centre into hundreds of homes and shops has reached the first stage after more than 10 years of talks.

Owners of the site next to York railway station have asked for developers to come forward with ideas for the area.

The team behind the scheme want developers to submit plans that will include up to 3,000 homes as well as shops and offices.

It is thought the investment will create hundreds of jobs.

Network Rail, Yorkshire Forward and the National Museum of Science and Industry - owners of the National Railway Museum - are behind the scheme and will consider development submissions.

The preferred developer will also be expected to provide a new transport interchange for the city centre and wider region, improve the National Railway Museum and provide a new station car park.

'Important opportunity'

Dave Custance from Yorkshire Forward said: "This development will further enhance the city of York's reputation as a major retail, business and tourist destination."

Director of the Railway Museum, Andrew Scott, said: "We see this as an important opportunity to get better links to the city's proposed cultural quarter."

Mick Martin of Network Rail added: "York is one of the major stations in Britain, with direct connections to Edinburgh, Bristol, Manchester, London and many other major cities, and a new transport interchange will improve journeys for residents and visitors to York alike."

It is hoped that by spring 2009 a preferred developer will have been chosen and public consultation can begin.