AT LEAST £100 million is set to be spent on the transformation of Blackburn town centre, it was revealed today.

The town's regeneration chief Councillor Andy Kay said that the money would be available to one of three developers shortlisted to revolutionise the shopping area.

And town hall sources have outlined options including the demolition of the indoor market - which would be relocated elsewhere in the heart of the town. The site would then be used for shops.

Another idea being explored is roofing Ainsworth Street to convert it into an indoor shopping mall.

Meanwhile Councillor Kay said: "This will revolutionise Blackburn town centre but it will not happen overnight. It is a long-term project.

"The scale and nature of the development proposals identified within Blackburn town centre and other key sites require the procurement of an extra partner who has the right expertise, track record and financial backing.

"Independently, the different elements could achieve a lot but combined they will achieve a lot more, giving people the shopping experience they want.

"There are a lot of radical ideas at the moment which could work. Until the final developer is chosen, nothing is certain other than that over the next decade, tens of millions will be spent giving Blackburn a cracking town centre."

Blackburn MP Jack Straw said: "It is good news for the town. There is a great deal of improvement done to the shopping centre but the Lord Square end continues to be a problem.

"As has been pointed out, it is vital something is done to drive forward the improvements to this part of the town. We need to do more to increase and improve the shopping in Blackburn on top of what has already been done. The council are going about it in the right way."

The authority announced last November that it wanted to link up with a private developer to form the sort of partnership which has helped transform cities like Manchester, Liverpool and Birmingham.

Nine formal submissions were received, detailing financial standing, track record in securing development, technical capabilities, equal opportunities and health and safety. They also had to present a brief outline of what they would do if they were working in partnership with the council in the town centre.

From that, three firms have been selected to draw up detailed plans on how they would re-shape Blackburn.

The plans are like to increase Blackburn's retail floorspace by as much as a third.

By combining with a private sector firm, the council can use its land ownership in the town centre, ability to compulsory purchase property and skill at getting Government regeneration funding hand-in-hand with the millions of pounds development companies push into such projects.

Firms are being asked to look at what they would do with rundown Lord Square - currently part of Blackburn Shopping Centre, being sold by Standard Life - and the markets.

The completed plans will have to be with the council by September 30, with the final winner announced on October 31.

Raymond Goldstone, president of Blackburn Chamber of Trade, said today: "The important thing is that whatever happens, the whole town centre is included. "

Conservative leader Colin Rigby warned: "While anything which improves the town is welcome, it is very important that the existing traders are consulted properly. There was consultation over Church Street, but the traders were ignored. The traders know Blackburn best."