PLANS to redevelop the Castle Piccadilly area of York reached a new stage after the first "people's panel" met to discuss the proposals.

The panel - made up of representatives from interested groups, including local businesses - will hold a series of meetings to come up with recommendations for a new planning brief for the area.

Last year, the Government threw out the £60 million Coppergate Riverside scheme for a huge retail and residential development.

Philip Crowe, chairman of York Tomorrow, who was at yesterday's meeting at the National Centre for Early Music in Walmgate, said it had been "very satisfactory".

"It's very early days yet - no decisions have been reached," he said.

"We are at the start of a process of trying to decide what are the best options. We are trying to identify the problems - how to develop a site in the centre of York which is of such historic importance without damaging the existing fabric of the city.

"The observations of this reference group will be taken seriously by the council."

Mr Crowe said the group hoped to hold its next meeting in September.

Updated: 10:23 Tuesday, July 20, 2004