THE first steps towards agreeing plans to develop a North harbour have been made.

A report by senior officers at Scarborough Council said the scheme for Whitby, estimated to cost £2.7m, aims to increase the number of yachting berths and provide new facilities for marina users.

It also includes better car parking, boat storage, a riverside walkway, lighting, landscaping and seating.

Development agency Yorskhire Forward, the Government Office for Yorkshire and the EU are all expected to help fund the project.

The council's head of engineering, John Riby, said it was also hoped to have public arts exhibits on the harbourside.

The council has to find £1.2m towards the scheme, and it is hoped to have the work complete by the summer of 2007.

Mr Riby said there has been opposition to having shops as part of the scheme because traders fear they will damage existing businesses.

But support had been given for office and studio units and an exhibition area.