A POTENTIAL £100m development is almost certain to be scaled down.

A senior council official told a public meeting that a scheme earmarked for King's Head Fields, in Stanley, had been replaced by smaller scale proposals.

An unnamed development company was chosen by the authority six months ago to draw up a scheme of regional importance, which would include leisure, retail and housing facilities.

The council's chief planning officer, Peter Reynolds, told the meeting, organised by Stanley Chamber of Trade, that he was unable to give precise details of the proposals.

But he said: "We had a developer come to us with a very exciting scheme. It was the kind of development idea that would have had people driving four or five hours to the area, like they might for the MetroCentre, or Flamingo Land.

"For some reason, they have cooled on that, although it could still be revived, and we have received a number of other, smaller scale, proposals.

"The schemes that are still being discussed are still very important for the potential development of Stanley."

Some traders at the meeting, held at Derwentside College in Front Street, expressed fears that any significant development could take business away from the centre and split the town in two.

A trader said: "It is on the other side of the bypass and would split the town in half. You'll be left with a Front Street with empty shops."

However, there was some good news for the town, with the announcment that Derwentside District Council is to receive £350,000 from the Government over the next three years for improvements to the area's transport links.

Mr Reynolds said that the council expected to receive £55,000 later this year, to improve transport in Stanley, after proposals had been fully scrutinised by Government inspectors.

A further £150,000 could also be granted next year with another £150,000 to come the following year.