COUNCILLORS are due to decide on plans for a major new riverside development.

Developers Carillion want to turn Milburngate House, in Durham, into shops, restaurants, office spaces and homes.

The £150 million project would include 400 homes and a boutique cinema.

The company already has permission to demolish the 1960s block, which has been empty since the Passport Office moved out earlier this year.

Internal demolition work has already started and if the plans are approved, construction is planned for May 2017.

Another major riverside development is currently underway nearby at the Gates shopping centre, which is undergoing substantial remodelling.

Eight objections were sent in relation to the scheme, with concerns raised about the size of the development, and impact on the views of the world heritage site, which includes Durham Castle and Durham Cathedral.

John Metson, from Sidegate Residents Association, said people living nearby were concerned about noise and dust during construction.

Durham Bird Club also wrote to the council asking for developers to take care to ensure the habitat for species including nesting sand martins, grey wagtails and dippers is not harmed.

The authority’s planning officers have recommended the scheme is approved.

A report, due to be considered by councillors, says: “This mixed use development would contribute to making the city centre a greater attractor for those outside the city and increase the level of facilities for the existing community.

“Expenditure as a result of the development would contribute to the vitality of the city. A number of other direct and indirect economic benefits would emerge from the proposed development.”

A decision is due to be made by the county planning committee, which meets at County Hall, in Durham, at 1pm on Tuesday, November 1.