PROPOSALS for a £300m development that could create hundreds of jobs have been submitted.

The scheme is earmarked for the 90-acre former Grove Cranes site at Pallion, in Sunderland, which has stood empty since the company closed six years ago.

Under the proposals, it will have about 1,500 new homes, shops, and a restaurant, fitness centre, sports ground and primary school.

The site, to be known as Riverside Park, could also be home to the city's children's hospice, the £5m Grace House.

The development will also feature more than 100,000sq ft of office space and it is estimated that it would be home to about 750 jobs.

Riverside Park could also accommodate the city's planned fourth road bridge over the River Wear.

The scheme by the O and H Group, which is privately funded, will take 16 years to complete and be carried out in three phases.

Plans for the first phase of the project, which is being backed by Sunderland Area Regeneration Committee (arc), have been lodged with Sunderland City Council.

Jonathan Bretherton, deputy chief executive of Sunderland arc, said: "It is our first really big, privately-funded scheme.

"This is a good day. I am really glad to be here at last.''

Paul Campbell, chairman of Sunderland Business Network, said it could be a step towards emulating the success of other riverside regeneration projects in Newcastle and Sunderland.

Councillor Bob Symonds, leader of Sunderland City Council, said the scheme would be looked at very closely, particularly how it fitted in with housing and development strategies.

He said the plans showed that confidence in the city was growing.