They said yesterday they intend to withdraw subject to an acceptable agreement with the council on moving to the site of the former Bluestones School at Norfolk Park.

With the details of a proposed lease expected to be approved next Wednesday by the council's cabinet, it looks as though one of the most divisive issues in Sheffield for years is on the verge of being resolved.

Andrew Coombe, chairman of St Luke's Board of Trustees, said: "We are delighted to have found a site, the former Bluestones School, where, with the local authority, we will consult and engage with the local community as part of the planning process.

"If the terms of agreement for Bluestones are acceptable to council members and the St Luke's trustees, we acknowledge that we then intend to withdraw from the Norton Nurseries site."

The proposed deal with the council sees St Luke's being given a 250 year lease at an annual rent of around £40,000 a year, which reflects its current land value for health and associated uses.

Authorities are normally required to sell at the best price - and council officers estimate the Bluestones site, off Park Grange Drive, could fetch £1.5m for housing.

But they also have leeway to make exceptions where the disposal of the land is regarded as promoting the economic, social or environmental well-being of an area. Norfolk Park, which is seeing a massive investment in housing and other social facilities, is seen as qualifying.

The St Luke's controversy blew up when the trustees expressed interest in building a "world class" hospice at Norton Nurseries. Critics insisted that the nurseries were part of Graves Park and should be spared any development.

One of the first actions of the new Liberal Democrat council was to declare that it would attempt to block the Norton Nurseries option. St Luke's agreed to look at alternatives, while refusing to drop Norton Nurseries.
Now the bitter dispute is almost over.

Coun Shaffaq Mohammed, Lib Dem cabinet member for climate change and local environment, said: "It's time for everyone to join together in supporting a positive solution and the Bluestones option seems to meet all the necessary criteria. We will be consulting with local people on this proposal, but I'm hopeful we can find a happy ending to this episode that will see the best possible deal for all local people."

Labour councillors support the Bluestones scheme, but there was a row at a meeting of the full council on Wednesday over the level of public consultation in Norfolk Park.

Labour leader Jan Wilson said: "For the Bluestones proposals to succeed is in the interests of everyone in the city. I believe the Norfolk Park residents are fine with this too, but they feel it would have been nice to be asked," she added.



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