A LEISURE group has cleared the latest hurdle in its bid to develop a pub and restaurant in a disused cinema.

Luminar Leisure was granted an entertainment licence yesterday for the proposed Chicago Rock Cafe, earmarked for the Palladium, a former cinema and bingo hall, in Claypath, Durham.

But it still faces opposition to the proposed eating, drinking and dancing venue when it applies for a drinks licence, in January.

The city council's licensing panel gave its approval for an entertainment licence, with 25 conditions, despite objections from residents and the police.

They are concerned about an increase in late-night drunkenness, noise and disturbance, at a later time than from existing licensed premises in Claypath.

Luminar, which has a chain of 70 Chicago Rock Cafes, applied for the entertainment licence from 11am to 1am, for up to 570 customers.

It claims the Chicago Rock venues attract "a more mature" drinker, with strict door supervision monitoring of the clientele.

Following a six-and-a-half hour hearing at Grey College, Durham, the panel granted the licence, but only to midnight. Chairman Councillor Joe Anderson warned Luminar to comply with the conditions, as the decision would be reviewed next year.

"We are prepared to give it a try," said Coun Anderson. "It was not an easy decision, but I think we have been fair limiting it to 12 o'clock."

Luminar director Steve Dennis said the company would review the status of its application following yesterday's decision.

Chief Inspector Laz Szomoru, of Durham City police, said he was disappointed by the panel's decision, but said the force was also likely to oppose the drinks licence bid.

Kirsty Thomas, spokesperson for the residents, said they felt utterly betrayed" by the decision, which further threatened the distinctive character of Claypath and the city in general.

She said the midnight "concession" would still see upwards of 350 people spilling into the street, in the early hours.

The residents also plan to maintain opposition at the drinks' licence hearing, which will take place at Durham Magistrates' Court, starting on January 16.