A former chocolate factory in York, which was closed by owner Kraft Food in 2005, is set to be transformed under new plans approved by the City of York Council (CYC).

Revised proposals put forward by developer Grantside for the multi-million pound regeneration of the Bishopthorpe Road site have been given the go-ahead, having originally been rejected by council planning officials in 2008. Plans for the former Terry's factory, which were drawn up by Manchester-based Turley Associates, include hotels, restaurants, bars, cafés and a public realm network comprising green spaces and courtyards, as well as a medical centre, offices and a housing element.

Four listed buildings are set to be revamped as part of the project, including the former multi-storey factory building, the former headquarters building, the clock tower and the former liquor store. A report put before CYC's planning committee on 3 February said: "Following the refusal of planning permission in August 2008, the applicant has gone back to the drawing board to reconsider the potential reuse and redevelopment of the site.

"The scheme brings substantial economic, social and environmental benefits and includes appropriate measures to mitigate against the potential harmful effects that development of this scale can have."