The Council had asked the company to provide a business case, a feasibility study on whether it is possible to build an arena of that size on the site and a valid planning application.
The site has been earmarked as a site for parking as part of the wider plans to develop the seafront at Coatham, but the Council has paused any work on the site for the remainder of this year to allow the company to prepare the documentation.
Following concerns raised by the developers about the timescales, the Council has removed the requirement for a valid planning application by the end of the year to give the best chance of the documentation being completed.
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The Council has also offered to explore opportunities with the developer around alternative sites in Redcar and Cleveland which could house an arena if the Coatham Bowl site is not feasible. The Council would pause any other interest on these sites for 12 months to allow a business case, feasibility study and a valid planning application to be prepared.
Cllr Mary Lanigan, Leader of Redcar and Cleveland Borough Council, said: "We are supportive of an arena in Redcar and Cleveland and we want to give any proposals the best chance of success. Removing the requirement of an outline planning application for the Coatham Bowl site by the end of the year will make it achievable to gather the information we would like to make an informed decision.
"We are keen to help in any way we can but we would like to know whether an arena is feasible before we make a decision about the land.""
