A DOCKLAND development that will reclaim a North-East brownfield site and create thousands of jobs has moved a step closer.

Officials from Tees Valley Regeneration have appointed UK property developer Terrace Hill to carry out the first phase of the Middlehaven project, in Middlesbrough.

Regional development bosses have identified the 197-acre site as a key part of their strategy to revitalise Teesside after years of manufacturing set-backs.

They are planning to spend more than £50m transforming the area into an urban village, to include 1,400 houses, offices, hotel and leisure facilities, and a major visitor attraction. The project could create up to 3,000 jobs.

Terrace Hill, of Teesside, has been given the go-ahead to come up with detailed plans for approximately 130,000sq ft of office and commercial property space that will form the nucleus of the redevelopment.

The company is already working on several key developments in the region including one in Darlington, opposite the town's bus station, the £16m Stockton Riverside College and Teesdale Business Park. It is also seeking a buyer for the Dressers' store in Darlington town centre. But the Middlehaven project dwarfs these schemes.

Tees Valley Regeneration chief executive Joe Docherty said: "The quality of this first development phase will set the standard for the rest of the site, which will ultimately provide new jobs."

Philip Leech, Terrace Hill North East director, said: "We are already one of the most active developers in the region, our involvement with the Middlehaven scheme will be built upon our previous successful regeneration schemes in this area."

Since the project was given the go-ahead two years ago, the site has been restored and infrastructure installed ready for development.

English Partnerships has already spent £15m reclaiming the dock basin area and opening up an initial 40 acres at the site.