AN HISTORIC North Yorkshire seafront theatre is to be sold to make way for a major new development.

Scarborough Borough Council is planning to sell The Futurist Theatre and flats at its rear to Yorkshire Forward, the regional development agency, so it can redevelop the site.

The sum raised by the deal has not yet been released. However, the council plans to invest the cash in urban renaissance schemes.

Malton-based construction company Harrison will put together plans for the redevelopment.

The Foreshore Road site has been used for entertainment since 1903. The Futurist is currently a cinema and also provides varied entertainment - children's shows, ballet, concerts, and traditional summer shows. Included on the bill for next month are heart-throb Peter Andre and a retro extravaganza show, Solid Silver 60s.

The council owns the theatre and is negotiating with the owners of other businesses in the building, including an ice-cream parlour, fast food restaurant and amusement arcade, to see if it can buy them to create an even larger development site.

Its cabinet portfolio holder for tourism and leisure, Coun David Jeffels, said: "The Futurist site is a golden opportunity for a major development right in the heart of the Scarborough seafront. It offers tremendous potential, and we are quite sure that it will ultimately provide the resort with a prestigious leisure and entertainment complex which will be a great boost to the local economy and holiday industry."

In a joint report to be discussed at a cabinet meeting on Tuesday, chief executive John Trebble and head of property services Graham Price said: "Any sale would be on the basis that the proceeds received by the council are used only for the purposes of investment in the Scarborough renaissance.

"The sale of the premises would be subject to the council continuing to manage and provide film and live entertainment in the theatre until such time as the buildings are demolished or redevelopment starts. The disposal of the Futurist Theatre and flats to Yorkshire Forward is a significant step closer to achieving the development."

A spokeswoman for Yorkshire Forward declined to comment on the matter, saying the issue was "commercially confidential".

Updated: 09:58 Saturday, February 19, 2005