MULTI-million-pound plans to redevelop Rawtenstall's listed Ilex Mill could become a reality.

Rossendale Council is currently negotiating to sell the mill in Bacup Road to Manchester development company P J Livesey.

The company's land and estates manager Richard Heathcote said: "If the scheme goes ahead it will be a several million pounds development and will take about two-and-a-half to three years to complete.

"Most of our work is with listed buildings which we develop sympathetically. We are hoping to develop the building mostly for residential use but also possibly for health and fitness use and ancillary uses."

At the corporate policy committee councillors were told the sale was proceeding but the council has still to find out if the Government money given to English Heritage and then passed on to the council to buy the mill from disgraced Lancashire tycoon Owen Oyston will have to be repaid.

The council applied for funding from the National Lottery for a £4.5million scheme which would have seen the town hall and police station relocated into the building. The bid failed to get lottery support.