THE Mechanics' Institute in Chester-le-Street began its life as a reading room and education centre for the working men of the town.

A century later, the grand old building is returning to its roots - this time as a flagship enterprise and learning centre, which will be at the heart of a multi-million pound project expected to regenerate the centre of the town.

The tendering process for the £1.1m scheme is under way and it is considered a key part of the £4m New Heart Project - the district council's ambitious plan to revive the fortunes of Chester-le-Street.

District council improvement programme manager George Mansbridge said: "This is an exciting scheme and is the physical embodiment of what we are trying to achieve in the regeneration of the town.

"It will be taking the Mechanics' Institute back to what its original purpose was - a learning facility for the entire community.

"The redevelopment of the building - as an integrated centre for lifelong learning, business support, enterprise development and workforce development - is one of the most important and innovative projects within the New Heart Project."

Mr Mansbridge said detailed design work had been completed.

He said: "What we have tried to do is take a historic building and preserve its features, while adapting it in a very modern way.

"The roof has been lifted to allow for glazing and the greater use of natural light, while the entire building will be a model of energy efficiency."

Proposals for the ground floor include training rooms and an office for the town centre manager, as well as a crche to provide on-site child care for parents attending courses.

It will also have a learning shop, which will include a range of tailor-made courses, such as hairdressing.

The action team for jobs will also be on hand to provide advice and guidance to people looking for work, while Connexions will offer career advice.

Mr Mansbridge said: "We want to make the experience of getting advice and finding courses available, like going to the supermarket."

The first floor will house mainly offices, with meeting rooms for the Chester-le-Street and Durham City (CDC) Enterprise Agency.

The upper floor will house a kitchen and conference facilities.

CDC business development executive Sue Parkinson said: "This will be a major opportunity for everyone concerned.

"All will be involved and interested in business and learning opportunities. To have them all housed under one roof - so all that provision can be made at one central point - is a major bonus for us."

The agency has been housed in the building for the past 20 years.

It is a non-profit making organisation that exists to provide support to people who are interested in going into business or who are already in business and want to expand or are having difficulties.

Ian Roberts, project manager with consultants Capita Symonds - hired to oversee the project on behalf of the council - said the external facade would be returned to its former glory with the help of a specialist stonemason.

He said: "It is going to be an important feature in the town centre. We are going to make the external appearance of the building attractive - something which will make people want to come in and take advantage of all the learning opportunities displayed inside."

Mr Roberts said an extra floor would be created on the right side of the building, which presently has only a ground floor - so the building will have two storeys throughout.

Work on the institute is expected to start in the new year, with the facility due to open next June.