THE developer behind the transformation of one of the region's unemployment black-spots has quit the town - casting doubt over a long-awaited tall ships centre.

Mandale Properties has invested substantially in Hartlepool's old dock area. But it has now closed its offices at the marina, which it is helping shape into a major leisure, retail and residential site.

The company has switched its headquarters to existing offices in Portrack, Stockton. Managing director Joe Darragh said Mandale would now be looking to develop more sites away from Hartlepool.

Mr Darragh claimed the town had missed out on investment worth millions of pounds because of demoralising criticism from the borough council and residents.

He said Mandale had planned a large scheme for the Queen's Meadow Business Park, near Greatham, Hartlepool.

But he claimed this and other building work on the marina, potentially creating hundreds of jobs, had been scuppered.

One of the major projects long-planned for the marina was the tall ships centre, but uncertainty now surrounds its future.

Mr Darragh said the firm could have spent another £40m on more apartments, call centres and shops.

The developer felt the whole town had been against his work, which has included bringing in a cinema, bingo hall, supermarket, restaurants, call centres, offices, flats, a retail park and new water sports premises.

Borough council chief executive Brian Dinsdale denied the council had been unhelpful to Mandale.

He said although it was unfortunate Mandale had moved its base, this should not harm either the marina or the rest of the town's regeneration.

Mr Dinsdale said the council had to act within statutory guidelines and in the best interests of the town. This did not always match a developer's aims.