THE signing of a deal has today brought plans for a new "model village" on York's outskirts a step closer.

The partnership agreement between the Joseph Rowntree Foundation and City of York Council commits the two organisations to pressing ahead with New Osbaldwick.

An agreement has also been reached with Northern Electric under which it will be paid £3 million to divert some power cables and send others underground.

Further details have also emerged about the balance of tenure in the 540-home community, situated near Osbaldwick and Tang Hall on the eastern side of York.

There will be 350 homes for sale, with 190 available as affordable housing - of which a third will be low-cost shared ownership.

The foundation wants high energy efficiency targets, with some use of solar energy, and also initiatives to save water and recycle waste.

"The open spaces will be of a higher standard and more generous than most housing developments," said foundation director Lord Best.

He said homeowners would pay an annual fee towards the cost of maintaining public areas.

Lord Best said the proposals had taken twice as long to get to this stage as had originally been expected.

It had been necessary to assess a range of things, including the area's archaeology, the flood risks, the natural habitat and cycling facilities.

There would now be 12 months of detailed discussions, with the submission of a planning application likely next March.

He anticipated that construction would begin in 2004 if permission is granted, with work carried out in phases and expected to take four to five years to complete.

Streets will be designed as separate "Home Zones" with only buses allowed to go all the way through the community. Rising bollards would prevent cars rat-running through Osbaldwick.

The streets would be designed to give priority to pedestrians and cyclists.

The new agreement formalises the role of the Community Consultation Panel as a full partner on the New Osbaldwick Committee, which will comprise twelve members - four representatives from the local community, the city and the foundation.

It is planned that the committee will hold its inaugural meeting at the end of November.

The agreement was hailed today by council leader Councillor Dave Merrett as an "important step in a very exciting development." He added: "We have been working closely with JRF and the local community in developing ideas for this site."

Councillor Ruth Potter, executive member for housing, said: "The signing of the Partnership Agreement means we can now move this important project forward, with the aim of increasing the number of affordable homes available to residents in the city."

Updated: 11:35 Monday, September 23, 2002