The figure includes 60,000 secured from the Northern Rock Foundation, 40,000 from the EU Regional Development Fund and another 25,000 from the Garfield Weston Foundation for the centre, which will be run in partnership with Durham County Council.
Tracy Blandford, project manager at Barnard Castle YMCA, said: "The centre will open by summer and will offer a range of facilities including internet access, music systems and a cafe. We will also have youth workers on site to help out with advice and carry out projects."
The drop-in centre will be managed by a committee of young people who will be taking responsibility for the running of the site and staff recruitment.
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