DEVELOPMENT giant Land Securities will not contest the decision to throw out York's Coppergate Riverside scheme, the Evening Press has learned.

The scheme, which would have seen the Coppergate area transformed into a shopping and residential complex, was turned down in September.

A Government inspector made the decision to say "No" after a long and costly public inquiry.

Among the reasons given for the refusal was that the scheme, dubbed Coppergate II, did not have sufficient regard for its proposed historic setting.

A Land Securities spokesman said: "I can confirm we will not be appealing."

No reasons have been given for the decision.

But shortly after the proposals were thrown out, Francis Salway, chief executive of development with Land Securities, said the company believed the case for more retail space in York had been proven. He said: "We believe we now have an opportunity to reflect on the inspector's conclusions, and work closely with City of York Council, English Heritage, the local community and others to develop a process to allow us to move forward from here."

Earlier this month, city council leader Steve Galloway revealed confidential talks had been held with Land Securities about Coppergate, but declined to reveal any details.

"They have not said they want to pull out," he said.

A major public consultation about the future of the Coppergate site is due to start in the New Year.

Announcing the consultation plans, Coun Galloway said: "Our view is that to rush towards a planning application, whether it be for public open space, another version of Coppergate II, or piecemeal development of the area, we risk the same outcome as the Coppergate II proposal.

"A full consultation will take place. Local residents, the business community, private sector investors and the environmental lobby are all invited to take part."

Updated: 10:07 Monday, December 01, 2003