CONTROVERSIAL plans to extend a popular out-of town shopping centre were approved in a surprise decision by councillors yesterday – opening the way for the creation of hundreds of jobs.

Proposals for the second phase of the Dalton Park complex, off the A19, at Murton, County Durham, will include the creation of a five-screen cinema, hotel, pub, food store, drive-through restaurant and petrol station.

Planning chiefs had recommended that Durham county councillors reject the outline application, on the grounds the development would have an adverse effect on the town centres of neighbouring Seaham and Peterlee.

But members of the county planning committee agreed the centre was a “jewel in the crown” and voted unanimously to accept the proposals.

The decision was taken following a lengthy meeting at which three other major applications in Peterlee were considered.

Tim Waring, representing Dalton Park, told the meeting the centre had transformed the former colliery waste site and created 500 jobs since it opened in 2003 – but was only partially completed.

He added the “recreational uses” proposed would be viable only if the superstore was approved.

The development will create at least 550 jobs directly and a further 89 jobs indirectly, while adding £13.5m to the local economy and creating 100 construction jobs, members were told.

Councillor Dennis Southwell said several local MPs had thrown their weight behind the development.

He said: “Dalton Park is a jewel in the crown. The cinema will be manna from heaven for residents in the area.”

Councillors also approved plans for a Tesco store on the former East Durham College site, on the corner of Burnhope Way and Essington Way, in Peterlee. The plans will create 400 jobs and will include a new library.

And they endorsed an application for a foodstore by the owner of the Castle Eden Shopping Centre.

The plans include the relocation of the health centre and a youth centre nearby. Both were recommended for approval.

The committee also agreed with planning officers that plans for a Morrisons store on the site of the former North Blunts Primary School, in Peterlee, be rejected.

The applications for Dalton Park and Tesco will be referred to the Secretary of State, because of their location.