THE FINAL phase of a business development in Bishop Auckland town centre will be occupied by a solicitors' firm by the end of next year.

A three-storey office block is to be built on the site of the former Wear Valley Hotel, in Newgate Street, as part of Asda's relocation scheme.

Five weeks ago, the store moved from the Newgate Centre to the site of a derelict foundry, Wilson's Forge, on South Church Lane, into a new £15m store.

As part of the move, the superstore bought the hotel, which had been derelict since it was gutted in a fire in 1994.

The company demolished the building and received permission to build offices in its place, on which work will begin in the New Year.

It is also revamping its old premises and the Newgate Centre in the spring.

Solicitors Hewitts, incorporating Wager Turner, has just announced that it is to be the new tenant and hopes to occupy the site by winter 2003.

The firm needs larger premises as it was formed in a recent merger of two Bishop Auckland firms - Hewitts, established in the 1920s, and Wager Turner.

With ten partners and over 70 staff, the firm is now the biggest in the town.

Partner Sara Keating said: "It is a positive move for the two firms as both are local and the extra resources and expertise will allow us to compete with legal firms outside the area who are moving into our market.

"The relocation is necessary because neither site is suitable for the number of staff, and we will be able to offer a better working environment, conference rooms and in-house seminar facilities and a better service to clients."

Town councillor Stephen Gregory is pleased with the redevelopment of the top end of the town but is worried business will dry up near the market place.

He said: "I only hope the firm's two town centre premises can be occupied so they are not left standing empty."

Miss Keating said the company would seek a buyer for Hewitts' site but that Wager Turner's site is leased, so the landlord would be responsible for finding new tenants.