COUNCIL bosses have taken over the multi-million pound revamp of Blackburn's Pavilions amid concern the scheme would not get off the ground.

Blackburn with Darwen Council today confirmed the Cathedral's development scheme for the site had been abandoned - more than a year after it offered to sell the diocese the three Georgian buildings for just £45,000.

Leading clergy had secured planning permission to build two glass structures in the gaps between the three Pavilions so that celebrity chef Nigel Haworth could open a restaurant on the newly-pedestrianised Church Street.

Now the council is masterminding the scheme and could look to include retail units in the project after concern that Cathedral bosses would not be able to secure funding for their scheme.

Today a spokesman for the Cathedral expressed disappointment at the council's move. Mr Haworth said he was concerned that the new scheme might not complement what he had planned and he was seeking further details.

Cathedral bosses had initially thought the project would cost £1million. But after securing planning permission, a feasibility study revealed the bill to renovate the buildings would be double the original estimate.

Cathedral officials told the council they wanted to use part of the project for offices and living accommodation for clergy in a bid to secure the extra grants needed.

But the council opposed the idea and withdrew its discounted sale price for the three buildings.

It is confident it will be able to secure the £2million needed from development agencies offering cash for council-led projects.

It could mean that part of the building could be used for retail to inject life into Church Street.

Graham Burgess, council executive director for regeneration, said: "Our preferred option is still to work with Mr Howarth to open a high quality restaurant there.

"However, if he does not want all of the building then there may be the option of putting some retail space in there.

"We are still liaising with the cathedral on the project but we feel we can get the grants needed to get the project done."

Originally, it had been hoped the new building work would have been completed by April 2002. But now it won't be finished until next autumn, at the earliest.

Council regeneration boss Coun Andy Kay said: "We can access funding the cathedral can't. It is an excellent site for a high-quality retailer to move into, with a restaurant above."

The Dean of Blackburn Cathedral, the Very Rev Christopher Armstrong, said: "Whilst we are very disappointed that the borough council felt the Cathedral scheme for the Pavilions did not meet their criterion. We will endeavour to continue to work with our partners in developing the precinct and its surroundings."

Nigel Haworth, who runs Northcote Manor in Langho, said: "II am still committed to this project and it might be possible to put a shop in, but the question is what sort of shop and will it complement what I have planned?

"I want to create a high class, quality restaurant which will attract people, including families, into Blackburn at night. "

Ronnie O'Keeffe, president of Blackburn's Chamber of Trade, has welcomed the redevelopment of the Pavilions but expressed concern at the delays. "I think the council have missed an opportunity to market the town," he said.