The National Railway Museumm, part of the NMSI group of museums that the Science Museum is also part of, has been granted planning permission to build a 200ft-high observation wheel. The wheel will become the second tallest structure in York (the tallest being the Lantern Tower).
Comparisons with the London Eye are inevitable (particularly as they seem to be using the 'Eye' moniker), but it's not quite on the same scale, being only half the height of the London version. However that presumably also means that it won't cost the same extravagant amount as the London Eye.
Planning permission has been granted for three years of operation, and it is due to be up and running by 'late spring 2006', which seems incredibly soon.
I look forward to it...