The consortium behind the Caltongate development project has said the revived plans could create up to 2,500 jobs and 145 new homes.

According to the BBC, the consortium, headed by Artisan Real Estate Investors, has now submitted a detailed planning application for the site.

In 2009, the collapse of the previous owner meant the plans were unable to continue. Mountgrange Capital were said to hope to generate £300m for the city by converting the New Town site into offices, houses and shops.

Now, the new consortium believes the project could generate around £43m for the local economy each year.

The plans, which have been submitted to Edinburgh Council, show a £150m mix of leisure, retail and offices linking New Street and East Market Street with Waverley station and the Royal Mile. The development covers a total area of around 220,000 sq ft and will be centred around a £6.5m civic square with office space, 400 hotel bedrooms, 28 retail units, 145 residential units and 40 affordable homes.

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If approved, there are plans to start work on site in spring 2014, with up to 720 construction jobs created in the building process.

A consultation was held with local people, businesses, civic partners and heritage bodies over an 18-month period and led to many historic Old Town buildings being retained. This includes the Canongate Venture, the facade of the Old Sailor's Ark, the views of Calton Hill from the Mile as well as the Jeffrey Street arches and small artisan units.

Artisan managing director Lukas Nakos said: "This planning application marks a significant milestone in the evolution of one of the most challenging city-centre developments anywhere in the UK.

"We are now delivering on our promises made when we first started this process some 18 months ago.

"We now have the opportunity to create, in the very heart of Edinburgh, one of Europe's most exciting and vibrant mixed-use communities which will set an international benchmark for sensitive and innovative development."

Architects for the development are Edinburgh-based Allan Murray Architects, with the affordable housing designed by CDA Design.

(JP/CD)