IT has lain contaminated and largely unused for about 40 years - ever since the York Gasworks closed down in the 1960s.

But now the final stage of the redevelopment of the eyesore site between Layerthorpe and Heworth Green finally looks set to be completed, as councillors are urged to approve plans to build 162 flats.

Council planning officers are recommending Tiger Developments Ltd be given conditional approval for 158 homes on land behind the former Frog Hall pub and to the east of the River Foss, after the firm agreed to include 29 affordable flats in the scheme.

The company will also build part of a new link road between Layerthorpe and Heworth Green. The road will complete the second phase of the James Street link road project, which will eventually connect Lawrence Street with Heworth Green.

A report to City of York Council's planning committee says the Tiger scheme coincides with two others which have already been approved which will altogether complete the redevelopment of the former gasworks site.

The previously approved plans are 148 flats and offices on the former Foss Bank car park, and 306 homes, and offices on a former gasholder and office site.

The company then said it would not be able to provide any affordable housing because of the abnormally high costs of development, caused by the need to deal with contaminated land and build the new link road.

The report by development control officer Roger Armistead said this stance had been unacceptable to the council, with other developers agreeing to make 20 per cent of their estates on other contaminated sites nearby "affordable".

The 29 flats which would now be available for rent through a housing association was equivalent to 18.5 per cent of the total number.

"This provision is the result of long negotiation and is recommended to members as being the best that can be achieved whilst retaining the viability of the site for the developer," said Mr Armistead.

He said the Heworth planning panel objected to the proposals, arguing that there was too much development in the area and there were too many one and two bedroom flats in the area, and family housing was needed instead.

The panel also said the bulky buildings would block views of the Minster and an overall traffic assessment for Heworth was now vital.

But Mr Armistead said: "This is a good use of a long derelict riverside site, with easy access to the city centre."

Updated: 10:51 Thursday, May 18, 2006