WORK has finally started on the £30m redevelopment of the Walkergate car park in Durham city centre.

Construction firm Amec, which redeveloped Newcastle's Quayside, hopes to complete the bars and restaurants, apartments, 100-bed hotel and 500-space multi-storey car park by next May.

The long-awaited development, on a former carpet factory site, marks the final stage of the city centre's regeneration and will connect with the three-year-old Millennium City scheme - which includes the Gala Theatre.

The firm says the development, which is part-funding Millennium City, will provide work for 250 construction workers and, when complete, will be home to 300 jobs.

The scheme has been planned for several years and was originally designed to include a multi-screen cinema, a health club, bingo club and nightclub.

Both Amec and Durham City Council have hailed the project as a boost to the city's leisure and tourism industry.

It is thought the delays in starting work were due to difficulties in finding tenants but Amec has announced that several national chains will open bars and eateries on the site - including French, Italian and American brands.

The chains secured so far include Lloyds Caf Bar, Ha Ha Bar and Canteen, Ask Restaurants, Nando's, Caf Rouge and TGI Friday's.

The development will feature terraces and landscaped squares as well as a walkway to Millennium Place.

Amec senior development surveyor Dan Needham said: "It will provide a fitting extension to Durham's Millennium City project and become an asset which will help to boost tourism and the city's economy.

"The high quality design, mix of uses and vitality which the development will bring will further enhance and complement Durham's historic city centre."

Durham City Council's Liberal Democrat leader Fraser Reynolds said: "It will result in the regeneration of a key site in the city centre which has suffered from a steady decline throughout the past forty years and will provide a major tourist destination and first-class facilities for residents and tourists alike.''

Durham City's Labour MP Gerry Steinberg has criticised the development, which he once supported, saying he doubted it would significantly revitalise the area.

But the City of Durham Trust, which joined with residents in raising concerns about the drink element of the scheme, fearing a rise in anti-social behaviour, welcomed the start of work.

Chairman Roger Cornwell said: "We had wondered if it was going to start. I hope the operators are going to attract a wide range of people, not simply 18-year-olds who come into the city to get drunk.''