GHOSTS from the past may be returning to haunt a nightspot owner's hopes of a new venture.

Plans by Javed Majid's business - Maher Entertainments - for a three-storey wine bar and 32-seater restaurant on the site of a tyre and exhaust centre, at Yarm, have already triggered an angry reaction in the town.

Mr Majid, who owns the Tall Trees Country Club, outside Yarm, revealed some weeks ago that he would not proceed with his plans if the majority of residents were not happy.

Now it has emerged that the site may have historical importance, which has prompted a review of the proposals by the local council.

Derek Campbell's tyre centre is sited on what would have been the precincts of an ancient Dominican Priory, traces of which have been found on the opposite side of the High Street.

Remains of medieval houses dating from the 12th Century could also lie underneath the depot and yard.

A spokeswoman for Stockton Borough Council, the planning authority, said: "We have raised a number of issues relating to car parking and the design of the building.

"We have also asked the applicant for an archaeological evaluation of the site. Potentially, it is important in archaeological terms.''

The council said it had not heard from Maher since it raised concerns with the firm at the beginning of September, so the project was officially on hold. Gwen Porter, chairwoman of Yarm Town Council, said: "We would like this resolved. But whatever plan Mr Mahid comes up with, Yarm Town Council would not support any pub or nightclub-type of development there.

"It is not the right location for such a development.''

Mr Campbell, who said the first he knew of landlord Mr Majid's scheme was when Stockton council sent him a letter asking him for his views, declined to comment yesterday.

A spokesman for Maher said: "Mr Majid does not want to do anything that will upset the people of Yarm, so he has taken heed of what they have more or less said.

"At the moment, everything is on hold until Mr Majid gets back from Pakistan, where he is doing charity work.