PLANS to sell a former Wearside colliery site to make way for a multi-million pound retail development have been given the green light.

Sunderland City Council’s cabinet agreed to sell eight acres of land at what once was Houghton Colliery, in Newbottle Street.

A cabinet report recommended the sale to developer Hellens Group Ltd to progress a £12million development plan.

Subject to planning permission, the plans aim to “expand and compliment” Houghton-le-Spring town centre.

This includes 6,000 square metres of retail space and outline plans for a new roundabout and improved access.

According to the report, the development will also create huge economic benefits for the region.

Cabinet member for housing and regeneration, Coun Rebecca Atkinson, outlined the plans at Sunderland Civic Centre.

“The development will create 90 jobs in the construction, 135 in the supply chain and 215 jobs in the retail units,” she told the meeting.

“This will generate an inward investment of £12 million and additional business rates with an income of £500,000 whilst also allowing for the regeneration of a brownfield site and obtaining a capital receipt for the council. ”

A four-way contest to buy the site was originally won by Urban and Civic in 2017.

After withdrawing from the transaction, the council approached Hellens Group Ltd who were the “second-ranked bid”.

After discussions with the council, the new developer has agreed to bring forward the same form of development to avoid delays.

According to a council report, the former colliery site will be sold at the “best price reasonably achievable.”

Coun Atkinson added: “This is a fantastic piece of regeneration work which is absolutely key to regeneration in the Coalfield area.

“It just shows our trajectory with regards to regeneration in the city as a whole.”

Houghton Colliery shaft opened in 1827, according to local historians, and  closed in September 1981 with a workforce of around 250 people.

The decision to revamp the site has since been welcomed by Houghton and Copt Hill ward councillors.

Copt Hill ward councillor Kevin Johnston, deputy portfolio for housing and regeneration said: “This will be a fantastic addition to Houghton and the town centre."

Houghton ward councillor, Alex Scullion, said: “This site used to provide the economic heartbeat of Houghton, supplying livelihoods for most of the families in the town. It is only fitting that once again it will be a source of hundreds of jobs and help drive prosperity in the town.This is a brilliant day for Houghton, with news that this development will now go ahead."