COUNCILLORS planning to build a new town hall are being advised how to avoid a multi-million pound mistake.

Rossendale councillors meet on Thursday to agree the steering group which will oversee plans to convert Rawtenstall's Ilex Mill into a new town hall, police station and magistrates court.

The group, expected to include councillors, police and representatives of funding groups, will be given information on an almost identical project in Gloucestershire which overran its budget by more than 50 per cent.

Stroud Borough Council's conversion of a textile mill to a town hall was originally priced at £4.9 million but ended up costing £7.6 million.

Following a visit to Stroud by Chief Executive Steven Hartley, Rossendale Council has been given a report from the District Auditor which outlines the mistakes the council made in not planning the project properly and trying to complete it too quickly. A report to Thursday's meeting advises: "When dealing with the conversion of an old building, overspends are always a possibility.

"In particular they stress the need for a preparation of detailed plans and also the appointment of good advisers, including a project manager."

Rossendale Council is counting on help from English Heritage, English Partnerships and the Heritage Lottery.

The council is also hoping Ilex Mill will be chosen as a pilot scheme by Prince Charles's Regeneration through Heritage programme.

Mr Hartley is due to report to councillors on a meeting with the chairman and other board members of Regeneration through Heritage in Leeds.

The major hurdle still to be overcome by the council is purchase of Ilex Mill from owner Owen Oyston.

The District Valuer has been instructed to try to agree a price. If he is unsuccessful the council will acquire the mill by compulsory purchase.

The council's planning committee also has to decide on an application to redevelop the existing town hall, police station and bus station into a new shopping centre.

Councillors have been advised the site could be attractive to retailers provided the right "anchor" stores were prepared to go into the centre.

They are expected to agree to the appointment of professional consultants to advise on layout and ways of attracting developers and tenants.

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