Major plans to regenerate Rhyl’s waterfront are set to take a step forward next week - but funding for the scheme remains an unanswered question.

A meeting of Denbighshire council’s cabinet on Tuesday will consider an Overarching Regeneration Agreement with Merseyside developers Neptune Developments Ltd (NDL).

The regeneration proposals are split into five zones and include a new hotel near the Pavilion Theatre and a new water attraction to replace the Sun Centre.

However, funding for the project and its ongoing costs are yet to be formally thrashed out, according to the council’s finance chief.

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Cllr Julian Thompson-Hill told the Daily Post: “At each stage, Neptune will have to provide a full business case - that is for each of the elements.

“There is an option to back out on both sides at this stage but, when a business case has been approved, it gets to a legally binding contract.”

The report being put to cabinet on Tuesday outlines the five stages of the development, including projected timelines, and discusses the cost of the proposed scheme.

It says: “The total cost of the scheme (£25-30m) could be funded by a combination of government grants, private sector investment and some contribution from the council.

“This could be in a number of forms, such as revenue to support prudential borrowing, a capital contribution, and/or land/asset transfer.”

Building work could start as soon as this summer if planning approval and satisfactory business cases can be passed.

A planning application to demolish a former restaurant on West Parade’s Children’s Village was registered on Monday.

The regeneration scheme’s five main elements are:

* A cultural and hospitality zone

* Active leisure zone

* Family entertainment zone

* Aquatic centre

* Town centre