The eight-acre Gransha lands complex opposite Caw roundabout and the Foyle Bridge has been earmarked for a ?10m development, which is currently being considered by the Planning Service.
Talks are now at an advanced stage and a number of hotel and supermarket companies are interested in taking the two new buildings over.
Applications have been lodged for 1,500 new houses in two plots of land beside and opposite the area.
Rapport Architects are acting as agents for the applicants, Caw Properties Ltd.
John McGinnis from Rapport said the plans would "benefit this whole area".
His colleague Irwin McNeill said the supermarket would have underground and ground-level parking, while mature trees and plants would help form a natural cordon between the development and the hospital at Gransha.
SDLP councillor Brenda Stevenson said the proposals were "very exciting" but added that if all the proposals go ahead, there could be concerns about heightened traffic numbers.
DUP councillor Maurice Devenney said: "I am delighted to see people are still prepared to invest here in the city of Londonderry in these difficult economic times."
Sinn Fein's Lynn Fleming said she "would really welcome the investment and job creation," but added that social clauses must be built in.
(NE)
Source: http://www.4ni.co.uk/news.asp?id=146910
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