Darlington College of Technology has announced a 'once in a lifetime move' after plans to relocate to the outskirts of town collapsed.

The college, which has 15,000 full and part-time students from across the region, will now move to a new £30m building on Haughton Road.

It will form part of an extensive development for the area which is set to include new businesses, a hotel and conference facilities.

Once the 75-acre site is developed it is hoped it will become the flagship project for the whole of the Tees Valley area.

College officials had initially wanted to move to the site of Torrington Engineering on Yarm Road despite concerns by some residents in the area that the move would cause increased traffic and pollution.

But the deal surrounding the site collapsed and attention turned to the former railway sidings on Haughton Road.

Sarah Farley, college principal and chief executive, said: "When we initially started looking for a new venue a year ago, the Haughton Road site was not available.

"I actually prefer it to the Yarm Road one and I am delighted we have reached an agreement on the site."

Darlington Borough Council, the Tees Valley Regeneration Company and the Rail Property Board will develop the infrastructure for the site before work begins on the college building.

The college will contribute to the cost of the infrastructure and will then pay for the new learning park with money from the Learning and Skills Council and from the profits of selling the college site on Cleveland Avenue and its sports facilities at Larchfield Street.

The college will also have to take out a small loan to help cover the cost of the £30m development.

Ms Farley said: "Darlington Borough Council has worked absolutely flat out to push forward the development of this site so we can move on to it.

"The college will be the first phase of this prestigious development. I believe plans will give Darlington the best educational facilities in the North-East and could even become a national model for further education."

Council leader John Williams said: "This is the ideal opportunity for the college and another excellent example of partnership working, bringing dividends for the town.

"It is also reassuring to residents in the Yarm Road area that there was no foundation for concerns in some quarters that the college was moving to that part of town."

Once the Torrington deal had fallen through, Ms Farley said she was glad the town centre development was possible as it fitted all the requirements of the college students.

She said: "When we have spoken to students the two things they have called for is better facilities and a bus link.

"This site offers both and once we are at the new site students will be able to get a bus straight to the door.

"It as near to the town centre as we are now, which is a great advantage."

The college will have car parking, football pitches and a main studying area.

Discussions are also ongoing with different agencies to bring additional facilities, such as a health centre, onto the campus.

It is hoped the new college will be open by Autumn 2005.