A new open air theatre is scheduled to open in Scarborough, North Yorkshire, in August 2010 after the local authority approved funding for the development of the venue.

Scarborough Borough Council (SBC) agreed to fund the £3.5m construction of the 6,500-seat theatre using a surplus from the first stage of the town's Sands development, which aims to transform 55 acres (22.3 hectares) of the North Bay area into a major tourist destination. The council has also reach an agreement with Apollo Resorts and Leisure to operate the venue as part of a 25-year deal, subject to the resolution of legal issues. The final programme of events is also yet to be finalised.

Jim Dillon, SBC's chief executive, said: "I believe that this will have a significant impact on both tourism and the economic well-being of the borough. It will be a unique facility and really put Scarborough on the national and international map." Meanwhile, plans to create a new waterpark as part of the Sands scheme are set to be delayed after Benchmark Leisure - the developer behind the project - admitted that the economic downturn had stifled progress.

Originally scheduled for completion in 2011, the opening of the new waterpark may now be put on hold until 2015. Image: Scarborough Borough Council