NEARLY 600 new jobs could be created in York through the transformation of part of the city’s chocolate factory.

Planners have recommended approval for Nestlé’s multi-million-pound proposals to use some of its land for homes, offices and shops.

The final decision on the massive Nestlé South scheme will be made by City of York Council’s planning committee next week, and the confectioner has revealed fresh details on the full economic benefits it says the scheme would bring.

A report by Michael Jones, the council’s development management officer, says the project would lead to the creation of 585 full-time jobs and supply 10,000sqm of office space.

Some of the historic buildings would be converted, and there would be 166 houses, 46 flats and 28 student flats.

There would also be 974 square metres of retail space within the former factory site, a community centre, gym and crèche, and a café within the Joseph Rowntree Memorial Library.

Areas of public open space would be included within the layout.

Nestlé announced in 2006 that it planned to upgrade its operation at the northern end of the Haxby Road site, leaving the southern section open for redevelopment.

It has said the commercial cash generated by the scheme would safeguard the future of its remaining 1,800 employees.

In his report to the planning committee, Mr Jones writes: “The reuse and partial redevelopment of the Nestlé South site represents a regeneration opportunity of strategic importance to the city.

“In addition, the proposal assists Nestlé to fund further investment in the northern part of the site, securing future employment in the city. The site would provide a quality mixed-use development which would provide a suitable level of amenity for future residents.”

Heworth planning panel has objected to the proposals, claiming they would be “an overdevelopment” and “unsustainable”.

The panel also raised concerns that the design would create “rat runs” and parking problems.

But York Civic Trust, while making some suggestions about the scheme, backed the plans and North Yorkshire Police welcomed changes made to the design following earlier concerns.

Two applications, one for outline permission and one for full permission, will be discussed at next week’s meeting and both are recommended for approval, together with a separate application to demolish two buildings between the Joseph Rowntree Library and the factory’s former Cream Block.

Coun Steve Galloway, City of York Council’s executive member for planning issues, said the council had encouraged Nestlé five years ago to invest in its site and said he was delighted with progress.

He said: “The new commercial units that will be constructed at Nestlé South will help to sustain our economy over the next decade and beyond. I hope that, after the planning application has been dealt with, we will see an early start on building these units”.