NEW plans have been drawn up for the multi-million pound development of the Walkergate site in Durham.

The car park, on derelict land below the Gala Theatre, was to have featured a multiplex cinema but an operator could not be found.

Now, more than two years since the original plans were formulated, there is a new blueprint for a £25m scheme.

Amec Developments, which revitalised Newcastle Quayside, has lodged a planning application with Durham City Council for six restaurants, a bar, a 94-bed hotel, 506-space multi-storey car park and 35 apartments on the site.

The company has already won temporary drinks licences.

It says construction will create 250 jobs over 18 months and that 300 jobs could be available with businesses on the site when it is finished at the end of 2004.

The original proposals also included fitness and family entertainment centres.

The sale of the city council-owned site helped to fund the Millennium City development, which includes the theatre.

The council's environmental services director John Jennings said there were still hopes that a northern offshoot of the National Portrait Gallery could feature in the development.

He said talks would be held with the gallery's trustees and new director at the end of the month.

"There's a lot of talking to be done but everybody is quite enthusiastic about it. That's not to say it's a done deal.''

Mr Jennings said there were still a 'lot of pre-applications discussions under way' on the latest proposals for Walkergate.

"We are working towards something which, we hope, will be a very successful scheme.

"For the best part of a generation Walkergate has been derelict. There have been numerous attempts to breathe new life into it and we have a real chance to deliver a development that will be good for the city in economic terms and provide support for the cultural centre we have built above it and be an asset for residents and visitors.''

Amec surveyor Dan Needham said: "We believe the end result will be a particularly high quality, mixed use environment, which will provide a fitting extension to Millennium City development and provide a true asset which will help to boost tourism and the city's economy.''

The City of Durham Trust has welcomed the proposed apartments but reiterated its concern about the number of licensed premises.

The council has decided that Amec does not need to draw up an environmental impact assessment.