AMBITIOUS plans to regenerate a north Durham town centre have been scaled down because of the current economic downturn.

It was hoped that £60m worth of private investment would rejuvenate the former mining community of Stanley.

Property developer Modus signed a development agreement with the now defunct Derwentside District Council that would have changed the face of the town centre.

Durham County Council is now is charge of negotiations and expected to discuss the scheme over the next few months.

It was hoped the Asda store would rebuilt as a giant superstore along with a new shopping complex.

But Councillor Carl Marshall, who represents the Stanley ward on the new unitary authority, said the credit crunch meant it is likely that there would be less retail outlets and less environmental improvements in the town centre from the investors.

He said: "As a result of the current climate the economic regeneration has not gathered pace as quickly as we would have liked.

"Over the past 12 months the plans from Modus were reduced as a result of the economic downturn.

"I do not feel that the plans alone are going to give the benefits we need for the people of Stanley."

Coun Marshall said he hoped new medical facilities and the potential for a multi million education academy would aid regeneration along with the new environmentally-friendly bus station in the town centre.

Part of Front Street was demolished last year after a firebomb attack destroyed the former Co-operative buildings in June last year.

Coun Marshall added: "We need to look at the regeneration of the town in its entirety.

"This will give us the opportunity to look at Stanley as a whole to see how we can move forward.

"At the minute you only have to walk up the street to see it is dying."

The newly-formed Stanley Town Council is meeting on Tuesday to discuss views on an overall town plan and what action it should take.

Chairman Tom Pattinson said: "Stanley needs to have something done in the town centre.

"At the moment we are not sure what people want because they have not been consulted."