CONSTRUCTION work on a project to breath new life into a dilapidated building is expected to be completed in the summer.
The partnership team behind the mixed-use development, at 206-210 Northgate, Darlington, has submitted fresh plans for the conversion work.
Northgate Partnership is also in talks with potential retailers to let the 4,600sq-ft ground floor space.
It could be sub-divided among a number of firms.
Two years ago, the partnership submitted an application to demolish the building and replace it with retail units and flats.
The group had initially wanted to convert the building but following talks with the council, it was found to be structurally unsound.
Nigel Appleyard, a member of the partnership, said: "The programme is well on and is due to be completed this summer.
"Northgate is becoming a popular area for retailers."
The amended plans are for 13 flats to be built above the shopping space.
The retail part of the development will be built on the ground floor of the building. The upper three floors will consist of a mixture of one and two-bedroomed flats.
Some of the homes will also have terracing.
The old building has been demolished and much of the work on the replacement four-storey building is already under way.
Mr Appleyard added: "We are able to incorporate another two flats because of the location."
When the first set of plans was approved two years ago, a number of residents in the area sent objections to the council.
They raised concerns about the number of rented properties that were in the area already.
Ward councillor Eleanor Lister said: "That is an issue in our ward, that there are an awful lot of rented properties in this area.
"A lot of them have not been managed well before.
"We would have to look at this in detail about the standard of management."
She also praised the work of the council's new Landlords Accreditation Scheme to ease tenants' and residents' worries.
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