It's back to the drawing board for a second time for the developers behind the controversial plan to extend York's Coppergate centre.

Land Securities, the firm behind the £60 million scheme, has confirmed it will be entering fresh discussions with city planners after councillors formally threw out the latest scheme to re-develop the Eye of York.

And it has pledged the revised proposals will leave more room between the edge of the development and Clifford's Tower - one of the main bones of contention. The promise came after members of the city council's planning and transport committee yesterday drew up two formal reasons for refusing the existing scheme - which has already been revised and reduced in size once because of public concern over the impact on the historic heart of York.

The reasons given for refusal were:

That it was too close to Clifford's Tower

That the scale of the buildings facing Piccadilly was too big. Committee members were also worried about the effect of the new development on either side of the River Foss - though this was not made a ground for refusal.

But despite their worries, they made it clear they were keen to see some kind of scaled-down scheme to revitalise the castle area.

Labour councillor Mick Brighton warned against making the planning restrictions so tight as to "make any development on that site almost impossible for ever and a day." And committee chairman Coun Dave Merrett added: "We have to be very careful we don't lose the baby with the bathwater."

Richard Akers, Land Securities' senior development surveyor said after the meeting: "We can confirm that we will be having further talks with the council to see if amendments to the scheme can be agreed so as to leave more space between the buildings and Clifford's Tower.

"What is clear from the committee decision is that the principle of this development is supported and that the mix of uses and, in particular, the additional retail space, will be welcomed."

Matthew Laverack, of the York Alliance, which fought the earlier scheme, said today he was encouraged by the attitude Land Securities was taking.

He said Mr Akers appeared to accept the concerns of locals and councillors. He said: "We welcome this positive attitude and look forward to having a consistent dialogue with him."

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.