The riverside site has stood empty since 1999

The former Vaux site in Sunderland, which has stood derelict since the brewery closed in 1999, has been the subject of a long-running battle.

The land's owner Tesco and regeneration company Sunderland arc both want to develop the site.

Arc wants to build offices, two hotels, houses and shops on the site as part of one of the city's biggest developments.

Sunderland City Council's planning and highways committee said it was 'minded to approve' the application on Friday.

The application will now be referred to Government Office North East because of the scale of the development.

City regeneration

It will decide whether to refer it back to the council for a final decision or whether to call it in for a public inquiry.

Tesco also wants to develop the site. The council said it is currently waiting for the company to provide additional information before it can move on with its application.

The council can grant permission to both applications.

Sunderland Council leader Councillor Bob Symonds said: "This is the biggest development project in the history of Sunderland City Centre.

"We welcome the progress made to date and look forward to the redevelopment of the Vaux site and the huge contribution it will make to the regeneration of Sunderland."