CHURCH bosses have secured an £11million deal to kickstart a flats and offices scheme in Blackburn Cathedral grounds.

And it is hoped that money made by the regeneration project will help secure the Cathedral's financial future.

Using £300,000, half of which has come from Blackburn with Darwen Council, cathedral bosses are putting the finishing touches to the scheme, which should be submitted for planning permission later this year.

Planning approval would unlock the £11million in loans the cathedral has agreed with banks.

Today Cannon Andrew Hindley said if things went according to plan the development, in the offing since 2002, could be finished within five years.

The plans include building flats to house clergy and cathedral staff, a new office development for the cathedral and Blackburn Diocese and additional office space for private let.

There are also plans to build 55 apartments for sale and let and retail units on land behind the cathedral, complete with underground parking.

The derelict public toilets which face onto Blackburn Boulevard would be demolished to make room for that development.

There are no plans for development on any of the cathedral's green space.

Canon Hindley said: "Once planning permission is received we shall work with the banks to bring to fruition phase one of the development, which is estimated to cost around £11million.

"We believe this will act as a catalyst for the regeneration of the town centre as a whole, protecting the side of the town not operated on by the shopping precinct.

"The money the cathedral makes from this project will secure its future for a number of years to come.

"The loans will be repaid from the commercial aspect of the scheme, which we feel will bring back a heart beat to the area.

It will be a lot more like cathedrals were in ancient times with people actually living around them -- that is what we are trying to do."

The "self-financing" deal would see the cathedral pay some of the money back immediately through the sale and rental of units.

The rest of the money would be paid back in the longer term.

Blackburn with Darwen Council has been in negotiation with the diocese for several months.

Both parties are keen to ensure this scheme does not become as delayed as the Cathedral's last big project, the restoration of the Waterloo Pavilions.