Southampton City Council (SCC) and developer Hammerson have signed a development agreement to push forward plans for the £150m Watermark WestQuay scheme.

Plans for the mixed-use development were put on hold last year due to the downturn, although the agreement now provides a legal commitment from both parties to work together on the project. Situated on a 2.2-hectare (5.4-acre) brownfield site next to the city's historic city walls, the Watermark WestQuay proposals were given outline planning permission in April 2009 and will include a 3,500sq m (37,674sq ft) park and public plaza and a 150-bedroom hotel.

A multiplex Cinema de Lux operated by National Amusements, restaurants and cafés, up to 24,000sq m (258,334sq ft) of retail space and a residential development also form part of the proposals. SCC deputy leader Royston Smith said: "In these difficult times we are still moving forward with our flagship development Watermark WestQuay and we are delighted that we have entered into the next major phase with Hammerson - the signing of the development agreement."

Hammerson project director Carolyn Kenney added: "Formalising the development agreement is the latest milestone for the scheme and is a fundamental part of the project's delivery. Following months of hard work, it demonstrates commitment from both sides to the continued regeneration of the city centre."