PLANNERS have backed proposals to create a £2.2m hotel and restaurant on a former steelworks site.

Derwentside District Council approved the application for the land near Puddlers Corner, in Consett, County Durham, near Derwentside College and Morrisons supermarket.

It is estimated the 24-room hotel and 150-seat restaurant -likely to cook Italian food -will create about 50 jobs.

Planning officer Fiona Clarke said: "This is a well-designed scheme, which would enhance this part of the town.

"Although this site is outside the town centre, it is in easy walking distance of the centre and centre and bus station.

"The development would increase the range of facilities available within the town centre and would make a positive contribution towards the regeneration of Consett."

Full and part-time jobs will be created for managers, chefs, bar and serving staff, as well as work for local construction companies.

Project Genesis is the group set up to oversee the redevelopment of the former industrial site.

Morris Muter, the managing director of Project Genesis, said demand from potential restaurateurs and hoteliers had been high, which he took to be a sign of business confidence in Consett.

The restaurant has been designed by Mike Dixon, of Chipchase Associates, based in Gateshead.

Although details have yet to be finalised, the main dining room will be round, made of brick with a copper roof overhanging the walls. There will be parking for 32 vehicles.

Project Genesis was formed when regional property company Dysarts, which created the Newcastle Business Park, teamed up with Derwentside District Council.

It is building an Innovation Centre at Ponds Court, in Consett, for Derwentside Industrial Development Agency.