The developers have created a model of how the resort will look

Construction is due to start on the �110m scheme at Carlyon Bay near St Austell which includes restaurants, a hotel, leisure complex and 500 apartments next month.

But the plans are dividing opinion amongst local residents.

While there seems to be no disagreement that the existing Cornwall Coliseum building should be demolished, it is the size and scale of what is replacing it which is causing concern for some people.

Building over beaches is like shooting yourself in the foot Mark Frazer, Carlyon Bay Watch

"What we object to is building over the whole of the beach," said Mark Frazer from Carlyon Bay Watch, a group opposed to the scheme.

"Our fear is that this beach is 1.75 miles long, there is an existing complex which we all want to be knocked down which takes up about a third of a mile.

"Building over beaches is like shooting yourself in the foot, the very reason that people come to Cornwall is its scenery."

Mr Frazer is now calling for a public inquiry into the plans.

Planning permission for some limited aspects of the scheme has not yet been granted and the government could order a public inquiry into those.

But his views are not echoed by another local resident, Terry Anders, who is backing the scheme.

"Most of the residents think the Cornwall Coliseum is an eyesore and a disgrace," said Mr Anders.

The Coliseum will be demolished to make way for the scheme

"The development will upgrade the general area."

Construction is due to start at the site in about one month and should be completed by 2005.

And Johnny Sandelson, chief executive of Ampersand the group behind the scheme, says it will be good for Cornwall.

"I think you have to balance the views of those who might be concerned, with the benefits of what we are creating here," he said.

"The vast majority of Cornwall, the councillors, the regeneration agencies and tourism bodies sees the economic and architectural benefits it's going to bring to the county.

"We know we are doing the right thing because we have the vast support of the county of Cornwall."

The company, which has a sales centre at Selfridges in London, says the cheapest apartments, at �157,000, have already been snapped up.