PLANNERS in Redcar were expected yesterday to ask a Government department to decide the fate of a controversial £35m proposal to revamp part of the town.

Redcar and Cleveland Borough Council plans to demolish 214 houses on the 40-year-old Courts Housing Estate, the Roseberry Square shopping centre and Riverdale Infant School in Redcar to make way for a new housing development of up to 560 houses, shopping and community facilities, landscaping and open space.

The proposal is seen as an important part of a larger scheme to regenerate Redcar.

The plans have met with opposition from local residents. The council has received 105 letters of protest along with a petition containing more than 1,100 signatures.

The residents' main concerns are the loss of the open space but the council says it is carrying out surveys on the environmental impact.

In a report to the council's planning committee, Dr Joan Rees, director of the Economy and Environment, said the proposals are in line with national guidelines and would provide enough open space.

Dr Rees' report said no objections had been raised about the redevelopment of The Courts area itself. The demolition and relocation of the Roseberry Square centre had caused concerns about the need to provide replacement facilities before the existing centre is demolished and ensuring the new centre is large enough to meet future needs.

The report said: "It is considered that the new centre would maintain its status as a local centre and satisfy the retail requirements of existing and proposed traders.

"The existing centre has a run-down appearance and a new centre in a more prominent location would represent a considerable improvement on the existing situation."

The council's planning committee was due to meet yesterday to discuss the matter and was expected to refer the decision to the North-East office of the Government's Department of the Environment, Transport and the Regions.