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

Construction firm Amec, which redeveloped Newcastle's Quayside, will build bars and restaurants, apartments, a 100-bed hotel and a 500-space multi-storey car park on the site.

The company says work should be completed by May next year and that the development will be home to 300 jobs, with 250 people employed on its construction.

The development will fit in behind Millennium Place - which includes The Gala Theatre and Durham Clayport Library - and will be linked to it by a walkway.

Amec says it will help to 'significantly reduce' the city's parking problems and attract more visitors and tourists.

Operators lined up include Lloyds Caf Bar, Ha Ha Bar and Canteen, Ask Restaurants, Nando's, Caf Rouge and TGI Friday.

The development will feature terraces and landscaped squares and Amec says it will improve access between the centre and the river.

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

"The scheme is in keeping with current Government planning policies in that it delivers true regeneration of a large under-utilised brown field site in the city centre."

Durham City Council leader Fraser Reynolds said the scheme was the final part of the city centre regeneration blueprint.

"It will result in the regeneration of a key site in the city centre which has suffered from a steady decline throughout the past 40 years and it will provide a major tourist destination and first-class facilities for residents and tourists alike."

Alex Munro, of joint letting agents Knight Frank, said the firm had worked hard to create the right mix of tenants.

"The tenants we have secured are on most developers' wish list and are testament to the strength of the design and location of the development."

During construction alternative parking is available on a temporary site at The Sands and the former Post Office depot in Providence Row.