A new multi-screen cinema and restaurants could be created on the site of a former livestock market in Hereford if a development agreement is given the green light by the local authority.

Herefordshire Council's cabinet is to consider proposals for the first phase of a new retail quarter put forward by the ESG joint venture company, which was established by the council in a bid to regenerate a 100-acre (40.5-hectare) site in the heart of the city over the next 20 years. London-based developer Stanhope has already been selected as the council's preferred partner for the scheme, with construction work on the 12.5-acre (5.1-hectare) retail quarter scheduled to get underway in 2011.

Stanhope, which is funding the development, is expected to submit a planning application for the first phase next summer and will be granted a 250-year lease by the council once the scheme is complete. According to the council, the project is the largest of its kind in Hereford since the city's ancient cathedral was built during the 12th century, and is expected to create around 1,500 new jobs in a bid to rejuvenate the local economy.