COMMUNITY leaders have described plans for an £8m to £10m investment in Consett as a "massive vote of confidence in the town".
Derwentside District Council has given construction company Persimmon Homes permission to build a housing estate on land to the south of Villa Real Road.
The 141 detached and semi-detached homes will be built between Villa Real Road and Leadgate Road, incorporating the old Northern Bus depot.
A number of buildings at the Carr House Industrial Estate will have to be demolished, forcing a number of businesses to relocate.
The council received two letters of objection from the businesses affected, and one from a member of the public.
Leader of the council, Alex Watson, said that by April, 3,800 homes will have been built in Derwentside since the closure of the steelworks in 1980.
Many of the new detached homes have been occupied by commuters from Tyne and Wear, attracted by cheaper living costs in north Durham.
Councillor Watson said: "This is a big boost for us and is a massive vote of confidence in this area. It shows that people recognise this as a nice place to live and that big businesses are prepared to invest millions of pounds into Consett. The scale of this housing development is virtually unprecedented."
The letters of objection pointed out that the development could disrupt business at the nearby Carr House Industrial Estate and could kill off protected species of bats, which inhabit the area.
Principal planning officer at the council Darren Cuming agreed that the scheme would force businesses to relocate, but that this had already been envisaged and agreed in the area's local plan. Measures could also be incorporated to protect wildlife.
Persimmon Homes offered to give the council £300 for each of the homes towards the council's play-scheme strategy.
Councillors agreed to grant permission last Thursday, on condition that a protected right- hand turn be built on the access road, and a footpath and cycleway link be provided.
No one was available for comment from Persimmon Homes.
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