PLANS for new homes and a business centre in an environmentally-friendly setting form the heart of a proposed key development in Middlesbrough.

The initial plan for the 46-hectare Hemlington Grange site will now be developed in more detail, including the overall approach to delivery with private sector partners - and getting planning permission.

Middlesbrough Council envisages a mixed-use site, which could contain about 740 new homes and 50,000sq metres of office and business accommodation.

Councillor David Budd, executive member for regeneration, wants to increase housing choice in the borough, and employment opportunities in the south of the town.

"Population drift has been one of Middlesbrough's biggest problems, and has affected it badly in a number of ways - from damaging Middlesbrough's economic vitality to reducing the money we receive to support essential local services," he said.

"To encourage more people to stay or locate to Middlesbrough, we need a wider choice of good-quality housing, and the plans for this site, along with others that are being progressed elsewhere in the town, can help that.

"This will be a mixed development, and there is scope for a good-quality business park alongside the housing.

"The key to the whole development will be its sustainability."

The council will also investigate sustainable transport, to link the scheme to the regeneration of Hemlington and any new community facilities, such as a community hospital or school.

Coun Budd said: "We will be asking developers to work to standards set by the Millennium Communities initiative, which seeks to provide innovative ways for people to lead an environmentally-friendly lifestyle, with good public transport links, accessible community facilities and open spaces. It will be a challenge, but one which we think will generate a lot of interest."

The area has benefited from a £1.2m Sure Start centre.

The centre, in Cass House Road, provides training and community rooms, with a day nursery for 50 under-fives run by Rosedene Nurseries.

It also provides health drop-ins, runs courses on parenting issues, supports the local network of childminders and offers training and job-seeking advice for parents.