PEOPLE are hoping a £500,000 community arcade will breathe new life into their town.

The New Shildon Residents' Association has been working on the plans for the facility since 1998.

The group is now in negotiation with Sedgefield Borough Council to find an appropriate location.

Dedicated volunteers on the Community Arcade Steering Committee have come up with detailed plans for the initiative after asking people living in the New Shildon area what facilities they would most like to see provided.

The proposals, which map out areas for retail use, a small caf, Internet facilities, a kitchen and health support area, among other provisions, were displayed at the town's annual carnival.

Association chairman David Snell said the project had received a good response from local people.

He said: "We want to have as many opinions as possible, including the negative, because we want to get this right. We have already had interest from doctors, vets and retail outlets. These plans are not the final draft. They may change, but this is an idea of what we are looking for.''

Mr Snell, who lives in Redworth Road, Shildon, said the association was anxious the arcade did not detract from businesses in the town centre or the recently-built Jubilee Fields Community Centre Centre, on the Jubilee Estate.

He said: "We want something that will enhance the facilities and make Shildon a place that people want to visit.''

The association is keen to make the building as environmentally friendly as possible, and is debating the idea of having a grass-covered roof and using solar power.

Mr Snell said: "There are other places that have grass roofs. It is not as rare as it sounds. We have talked to the architect about it and it is a possibility.''

The association has identified land between Chapel Street and the Locomotive pub, and is negotiating with Sedgefield Borough Council, which owns the land.

The next stage will be to apply for funding from various organisations.

A spokesman for Sedgefield Borough Council said the idea would be discussed at a meeting of the authority's cabinet tomorrow.

He said: "The borough council is working with the residents' association to help identify a site."