Businesses in Whitley Bay have differing opinions about plans for a new leisure facility made of shipping containers.
The Spanish City's former Empress Ballroom is where Danieli Group plans to erect the Stack complex.
Bosses at Stack predicted that it would revitalize use for the structure and draw visitors to the neighborhood.
While some companies praised the plan, others claimed it would hurt town center revitalization by driving customers to the seafront.
In addition to developing sites in Durham and Bishop Auckland, Stack, which has a complex in Seaburn, has also received approval for a site in Carlisle.
A live entertainment stage, food trucks, bars, and a roof terrace are among the amenities planned for the former Empress Ballroom.
Chief Executive Officer of the Danieli Group Neill Winch stated that it "would bring an underutilized building" back into use.
It would "continue to build Stack's strong presence" in north-east England, he continued.
According to the Local Democracy Reporting Service, a number of independent food and beverage establishments expressed concern that the development might "hurt" trade.
"It won't help me, it's not going to be in my favor," said Mark Hirb, proprietor and manager of the Crab and Waltzer. Now there are enough restaurants in the area.
"I believe it will hurt to have another. ".
It may "set back the regeneration of the town center," according to Tony Patton, owner of the Dog and Rabbit pub.
He continued by saying that it might have a "pied piper effect" and drive "everyone to the seafront" and out of town.
Others, however, have praised the proposal. Nicholson's Butchers owner Kathryn Meadows said it would be "fabulous" and "bring more people to the town.".
It will draw a younger community, and we desperately need that, she said. ".
It would be "brilliant," Anne Thomas Workwear owner Nichola Strasser said, adding that "we need somewhere for the youngsters and the oldies too.". ".
Later this year, North Tyneside Council will decide whether to approve the application.
