PLANS to build a new village at the former site of one of York's biggest employers are being considered by councillors.

An application to build new homes, a medical centre and shops to replace the Tenneco Automotive site in Rawcliffe, home to the former Monroe's shock absorbers factory, has been received by City of York Council. Members will debate it at a meeting on Thursday.

Richard Graham, the council's area development control officer, said: "The proposal involves the demolition of all of the existing buildings on the site. The concept plan shows that vehicular access to the site would be solely from Manor Lane, with two points of access providing a loop road system."

Early plans suggest the site would be used for between 180 and 275 houses.

Medical and retail centres would be based near to Manor Lane.

Previous applications for housing on the site have been turned down because the council wanted to avoid loss of employment land.

But councillors have since agreed that housing, if mixed with other uses, would be acceptable.

But local residents have raised concerns. One, who asked not to be named but lives in St Mark's Grove, said: "We all know that there is going to be some degree of housing on this site, and this looks like the least bad option.

"But we are concerned about the retail use. Shops here already are just managing to keep their heads above water, and extra competition would not be good for them."

There is also concern that land may have been contaminated by its former industrial use.

The site was at the centre of a health scare when it was revealed earlier this year that white asbestos was in the roof of a hangar which had been damaged in the 1980s, potentially exposing workers to the dust.

But Mr Graham said a detailed assessment of any risk, and work to make the site safe, would be carried out if permission was granted.

He said: "It is considered important for the council to use this opportunity to ensure that the site is developed according to principles acceptable to local residents and to the council."

Updated: 11:13 Monday, October 22, 2001