It was established on 27 February 2023 by statutory instrument 2023/103, and is a part of Tees Valley Combined Authority, with board comprising elected and private-sector members.

The establishment was first proposed in August 2022 by the Tees Valley Combined Authority as a publicly owned statutory body with increased powers (including planning, business rate relief, and acquisition of land by compulsory purchase order).

[3] Following the consultation, a shadow board for the corporation was established comprising elected and private-sector members from:[3] At a meeting on 24 February 2023, Middlesbrough Council voted 16 to 12 in a non-binding vote against the planned development corporation.

[8] Middlesbrough MP Andy McDonald called it a “scandalous denial of democracy".

However, the legislation came after 25 of the 46 councillors (54%) signed an open letter of support for the MDC sent to the secretary of state Michael Gove.