British architecture studio FaulknerBrowns have unveiled the second phase of their major riverside regeneration project in Durham, northern England, which aims to create a new “regional and national destination” in the historic city.

A planning application has today (18 April) been submitted for the redevelopment of Milburngate House, a passport office, into a 2 hectare mixed-use development with extensive public realm along the River Wear.

The £150m (US$199m, €176m) project would see the demolition of the 1960s building and its replacement with a new city district, called Milburngate, featuring public space, shops, restaurants, a cinema, a hotel and apartments set in part around a new waterside square.

“The guiding vision of this application is the creation of a detailed and outline design framework that will regenerate and fully integrate a new piece of urban fabric into the existing context of Durham City Centre,” said the architects in a statement. “The ambition is to create a new vibrant quarter within the city that will bring new public spaces of unique character.”

FaulknerBrowns partner Ben Sykes added: “This is an important milestone in what has already been a four-year journey to transform this part of Central Durham. This hugely ambitious proposal is fundamentally about the creation of a series of new places and spaces to reconnect the site into the city.”

Milburngate is the second and largest phase of the studio’s redevelopment plans for Durham, which is famous for its UNESCO World Heritage protected cathedral and castle. The first phase has seen the development of a derelict ice rink building into a new home for the passport office and the office for National Savings and Investments.

The overall project envisions 450,000sq ft (41,800sq m) of mixed-use development split into three zones in the heart of Durham’s city centre, benefiting from simple pedestrian access to the train station and existing amenities.

The scheme is being led by a joint venture consisting of Carillion Developments, Arlington and Richardson’s Capital.

FaulknerBrowns are known for their high profile leisure-focused projects, including a multi-million pound waterpark, gym and spa building in Coventry, UK.