THE first of the new stores attracted to Rawtenstall by the £33million transformation of the town centre are set to open by late 2007, the developers declared today.

Rossendale-based Hurstwood Group is set to start work on the project in New Hall Hey before Christmas.

The first stores to open will be DIY superstore Homebase and a health and fitness club.

The Hurstwood Group is still in talks with other companies as they try to entice big names into the development, which will create 1,000 jobs.

The plans were given the go-ahead last month by Rossendale councillors who went against the consultants they had hired for advice.

New Hall Hey is to be developed into 5,133sq metres of offices, 9,932sq metres of commercial workshops and 3,995sq metres dedicated to Homebase.

There will also be 7,665sq metres for leisure activities, including a bowling alley and health and fitness club.

The Heritage Arcade, in Bacup Road, will be redeveloped into restaurants and a bar.

One of the first jobs for the Hurstwood Group will be to build a new roundabout on the Edenfield by-pass to service the development at New Hall Hey.

Chairman and managing director Stephen J Ashworth said: "If everything goes to plan, the public could be making use of some of the new-look facilities a new Homebase store and a health and fitness club by late 2007.

"That's the timetable we have set ourselves.

"It is a demanding and ambitious schedule and, of course, there are some issues which are outside our control, but I am a born optimist.

"We have unanimous cross-party support of Rossendale Council for our proposals and we want to get started on construction work as soon as possible."