It is hoped “this will reshape the town to make it a more attractive place to live and visit, support small businesses and deliver a master plan to maximise future funding”.
The Hartlepool Mayoral Development Corporation will be the second of its kind to be set up in the region and will follow the South Tees Development Corporation, now known as Teesworks.
The plans will build on previous investment in Hartlepool, including £20m for the redevelopment of the Hartlepool waterfront along with £3.8m of support for the new state-of-the-art film and TV studios.
Mayor Houchen, who has also secured £12m to help transform the town’s railway station, and council leader Cllr Shane Moore will now work together to finalise which areas of the town centre will be included in the development zone before submitting the plans to Michael Gove at the Department for Levelling Up, Housing and Communities.
Mayor Houchen said: “We have big plans to transform Hartlepool’s town centre.
"We’ve seen the same transformation at Teesworks in Redcar bringing international investors and creating thousands of jobs for local people.
"We want the same transformation for Hartlepool so that Poolsworks.
“Over the past few years, I’ve been working closely with Cllr Shane Moore on the regeneration of Hartlepool town centre and I’m excited to be taking these plans to the next level by setting up a Mayoral Development Corporation for Hartlepool.
“Transforming Hartlepool town centre won’t happen overnight, like in Redcar it will take several years to deliver the full redevelopment.
"But if we get this right the long-term future for Hartlepool is extremely positive and one local people should be excited for.
Hartlepool MP Jill Mortimer welcomed the announcement, adding: “Hartlepool town centre is filled with so much potential, and I’m thrilled that Mayor Houchen is taking the bold step to create a second Mayoral Development Corporation, this time in Hartlepool.
"This coupled with the council’s investments and the £25m secured from the Government’s Towns Fund will mean the full potential of our town centre can be realised, meaning more people shopping locally and supporting our brilliant small businesses.”