A BOUTIQUE cinema operator has earmarked Durham City as the location for its first multi-screen cinema in the North-East, it has been revealed.

The Everyman Group has agreed terms with the developer of Milburngate, which says it is also attracting significant interest from a number of premium food and drink operators.

Milburngate, on the banks of the River Wear, will feature a high-quality mix of homes, offices, bars, and restaurants as well as the cinema.

The development consortium, comprising Carillion, Arlington Real Estate and Richardson Capital Llp says following a “successful public consultation” earlier in the year, it is finalising its proposals for the Milburngate House site to create a premium, mixed-use scheme.

Monday's (October 5) announcement by the consortium comes as Durham county councillors are set to consider a £30m development by Clearbell Capital for the city's The Gates shopping centre.

Planning officers have recommended the council’s strategic county planning committee meeting tomorrow (Tuesday, October 6) approve those proposals, which include a mix of retail, financial service, restaurant, bar and multiplex cinema uses, as well as 253 student beds.

The developers behind Milburngate plan to hold a public exhibition at a date to yet to be set in November, to enable them to conclude their application.

Milburngate will be the second phase of an ambitious regeneration project following the redevelopment of Freeman’s Reach on the opposite bank of the River Wear.

Developers say it will retain more than 1,000 high value jobs in the city, as well as enhance the riverside landscape and access for visitors.

Carillion development director Neil McMillan said: “When we started this project we firmly believed that if we offered the right quality of environment then Durham City could attract some really exciting and innovative operators, transforming this site into a vibrant mixed use destination of regional significance.

“The positive responses we’ve had from our target operators, including Everyman, is really encouraging and reaffirms our view that we can create a scheme in Durham to rival some of the best developments in the UK.

“While there is still a lot do, we are very much on track to turn our plans into reality and we expect to submit our planning application around Christmas time with the intent to secure approval in early 2016, with construction to commence soon after.”