CAMPAIGNERS fighting plans for a £55m housing and leisure development appear to have suffered a setback after a study of legal issues.

Protestor Chris McGlade cited historic covenants on the Redcar seafront land which he says means the land can only be used for leisure and not housing.

But Redcar and Cleveland Borough Council has issued a statement declaring that a legal investigation shows the seven 80-year-old covenants on the land are no barrier to the development.

Mr McGlade and hundreds of other campaigners have handed in petitions and letters of protest against the plans for Persimmon Homes to build on the Coatham Enclosure area of Redcar.

One notice of objection signed by hundreds of objectors argues that the covenants mean the development can not go ahead.

The objectors' notice says: "We understand that Redcar and Cleveland Borough Council wish to alter, amend or abolish various covenants on the land included in the proposed Coatham Enclosure Development and wish to build on what may be public open space."

However the council has now hit back saying the covenants will not stop the building work.

Councillor Vera Moody, cabinet member for economic development, said: "Our solicitors, Eversheds, have examined all the deed packages. Four do not have covenants, one is associated with adjoining land outside the development and the remaining two would not prevent development taking place."

Coun Moody said the Town and Country Planning Act protecting public spaces was no barrier either.

She said: "The council's Local Plan was adopted in June 1999 and the Coatham was designated as land for a major leisure and linked housing development.

"Although the Coatham site clearly includes elements of public open space, under the Town and Country Planning Act, the council can change its use and then dispose of it for development purposes."

Mr McGlade, a well known comedian in Redcar, and other campaigners have previously sought legal advice and say they will not give up any legal battle.

The council has said a £22m grant to pay for the development's leisure facilities, which included a six-lane, 25-metre pool, is close to being secured.