One of the country's most popular seaside resorts is set to undergo a £120 million facelift.

Council chiefs in Scarborough hope the proposed new-look North Bay will transform the town and region's economy.

Leisure consultant John Anderson said the plans should be seen as a ''very important scheme'' in the wider context of UK seaside resort regeneration.

He said: ''As well as providing an exciting new destination for Scarborough, it is likely to be seen as a landmark project by central Government and will prove that seaside resorts can take on their foreign competitors and win back market share.''

Developer Benchmark Properties has formally submitted a £120 million plan to build the new 770,000 sq ft complex.

The application includes proposals for a covered leisure centre, a conference hotel with health and fitness club, hillside apartments, forest and seafront apartments, shops, restaurants and bars, a nightclub, family entertainment facilities, a casino, beach facilities and car parks. The outline planning application will now go out for consultation.

The news has been welcomed by the Regional Development Agency, Yorkshire Forward. Chairman Graham Hill said: ''A major North Bay development would make a significant contribution to the long term economic future of Scarborough.

''The town's renaissance programme, about delivering aspirational vision for Scarborough will give the private sector confidence to invest more money in such ambitious projects, playing a major part in transforming the town.''

The Leader of Scarborough Borough Council, Councillor Eileen Bosomworth, said she was delighted with the application.

''It is excellent news that the application is now in and we are making positive steps towards providing new leisure facilities for our residents and visitors,'' she said.

''The submission of this outline planning application sends out a clear message to investors that Scarborough means business.

''It is now up to the people of Scarborough to look at the application and give us their views. ''This proposal represents a very exciting opportunity for the town and it is vital that it has the support of our residents every step of the way.''

The Council's Chief Executive, Mr John Trebble, said he could understand residents' frustration at the time it has taken to get this far.

''A major scheme of this magnitude does not come together quickly and the formal application and the signing of the agreement are the culmination of a great deal of hard work by Scarborough Borough Council and by the developers.

''This is also now the beginning of the next stage of the process, which will involve extensive consultation with the public, local organisations and the statutory bodies like the Highways Agency and North Yorkshire County Council.

''There is still a long way to go and much work to be done - not least the securing of operators to run the attractions.

''But we, and the developers, remain optimistic that there is demand out there and that today we are seeing the start of the next phase of a very exciting project for this borough.''