A DEAL between a developer and Darlington Borough Council to start work on a major out-of-town business park has collapsed.
Highbridge Morton Palms had already won permission to build two office blocks on the wasteland site off Darlington's Yarm Road, claiming it would create 400 jobs.
The park is a joint venture between the borough council and regional development agency One NorthEast, which together have already spent £1.5m ensuring roads and basic infrastructure are in place to attract new firms to the area.
They had hoped that the completed Morton Palms site, including the two office blocks, would attract £17m of private investment to Darlington, creating a total of 2,000 jobs.
Despite the collapse of the deal, the partnership is confident the area will still be developed as offices.
A council spokesman said: "The developer could not proceed with the development at the pace we would have liked. They have made the decision for their own internal reasons.
"There has been no shortage of interest in the site from prospective developers and we are actively seeking a new developer for the site."
Highbridge Morton Palms was granted planning permission for the two offices and this will remain in force for any future developer to take over.
No one from Highbridge Morton Palms was available to comment last night.
This is the second blow for the development site. In August, Duncan Bannatyne, founder of Bannatyne Fitness, pulled out of a proposed £6m sports development.
Mr Bannatyne had wanted to build a health club and head office for his company at Morton Palms, creating 90 jobs.
But he turned his back on the deal, when it was revealed that a rival sports business, Soccerdome, could be built in the area.
The council refused to reject the idea outright and said any ideas would be considered if planning permission was sought.
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