A £12MILLION redevelopment of Blackburn Cathedral grounds to create new jobs and shops was announced today.

Church bosses said the plan would prevent the area from becoming 'a night-time wasteland' and hiding place for drunks and addicts - as well as providing extra cash for the diocese.

Plans for the 3.5-acre site have been backed by Blackburn with Darwen Council and the North West Development Agency.

And cathedral officials are confident of raising the cash from investors, despite their failure to secure £1.3million for the refurbishment of the nearby Waterloo Pavilions last year.

The development plan for the cathedral site was drawn up following discussions involving the borough council and private sector experts.

More than 100 jobs and almost 3,000 sq metres of office and retail space - possibly including a new tourist information centre - would be created in a four-storey building adjoining Darwen Street, with the prestigious address 1 Cathedral Close.

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Improvements would also take place within the cathedral grounds and around £3million would be spent on improving the crypt for use by more community groups.

New library, training and meeting facilities are planned in the areas below the cathedral, while existing buildings - such as the redundant Blue Dahlia building which used to house bus station toilets - would be renovated to provide housing for cathedral staff.

Parts of the grounds could be sealed off and lighting could be improved for security reasons, but the dean, the Very Rev Christopher Armstrong, said: "We have no intention of fencing ourselves in."

He added: "We are very excited about these developments because of their great value to the community, as well as to the cathedral," he said. "The council is making good progress on the development of Blackburn town centre, but if it is not to be a wasteland after 6pm, it desperately needs more residents.

"We feel that the town is at a watershed. We believe the Cathedral has a critical part to play in encouraging the flow of people back to the town centre and a consequent renewal of confidence in the town.

"This is a big project and costs so much because the buildings have to be sensitive to their surroundings, while at the same time being bold and daring."

There is a shortfall in funding throughout the Church of England and the rents from letting parts of buildings would ensure that extra money can be spent on maintaining the cathedral.

The cathedral has spent some £3million on repairs in the last decade, on a building which last year cost £270,000 to run.

Council bosses were prompted to take over the Pavilions refurbishment last year amid fears the the Church could not find the funding. But changes in the way money is allocated by the NWDA has made cathedral officials confident of pulling the new plan together.

The dean added: "I am confident we can get the funding now, because some sources of funding have changed."

Coun Andy Kay, in charge of regeneration at the council, said: "We are happy to help in anyway possible. We are working with the Cathedral on these exciting plans."