A DEVELOPMENT company is bidding to convert a derelict eyesore mill in the centre of Rawtenstall for residential use.

In April Rossendale Council decided to apply to have Ilex Mill delisted with a view to ultimately demolishing the building and developing the land.

An ambitious £4.5million council scheme to develop the mill for a new town hall and police station failed to get approval from the National Lottery.

Before applying to the government for delisting, the council advertised the property asking for offers and three potential buyers were identified.

Following a meeting of the town centre regeneration sub-committee it was resolved to proceed with a bid to purchase the building by development company P J Livesey, of Manchester.

The building in Bacup Road was once owned by property tycoon Owen Oyston, the ex-Blackpool FC chairman, jailed for rape in the 1990s. It has fallen into disrepair over the years.

P J Livesey's land and estates manager Richard Heathcote said: "At the moment it is at a very early stage in the development. I had never heard of this mill until the advert arrived at our office asking for offers.

"We are primarily a residential development company and have carried out lots of conversions of listed buildings and would like to do that sort of scheme if we are successful.

"We would be looking at the mill for predominantly residential use but there would also be an element of other uses."

He said the company had already successfully converted Eagley Mills in Bolton, and properties in the Manchester area, Rufford New Hall near Ormskirk and the company was currently working on sites in Liverpool, Essex and Norwich.

He said his company was purchasing property throughout the country and had carried out the sort of development proposed for Ilex for the past 25 years

The recommendation to proceed with discussions to buy the mill is subject to conditions, including an agreement being reached with English Heritage regarding the claw-back of funds and the outstanding £30,000 in respect of repairs to the mill fabric.

English Heritage provided the council with £290,000 to buy the mill and a further £110,000 to make the building wind and weather tight. This money may need to be repaid.

Chairman of Rossendale Civic Trust Kathy Fishwick said: "We want to see the mill preserved. It is a fight we have been carrying on for 20 years and the amount of interest is very welcome.

"Rossendale Civic Trust is aware of this company's interest in the mill and we welcome it as a sign of the ongoing potential for its development.

"If someone can make progress on Ilex as it is, that would free up thinking about the rest of the town centre.

"I think including the two in the same development is too much."