THE first 1,000 sq ft floor of Blackburn’s flagship One Cathedral Square office block has been let, easing fears the five-storey building could become a multi-million-pound “white elephant”.

Major national company Capita will bring more than 50 new staff into the town centre under the opening deal to locate white-collar staff in the heart of the £34m landmark Cathedral Quarter complex.

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The firm has pledged it will not affect numbers at its offices in Blackburn’s Castleway House and India Mill in Darwen.

Between 50 and 70 staff are expected to move in by the summer.

The deal, at “commercial” rates, raises hopes that negotiations to let the remaining four floors in the specially-glazed building can be sealed soon.

The block was opened by former Blackburn MP Jack Straw in November.

It has 28,127 sq ft of Grade A office space with a guide letting price of £15 per square foot a year above ground-floor restaurant and leisure units, one of which was let in February for a coffee shop and dessert bar called BB1 Central, opening in April.

Capita, a FTSE 100 company, recently ended a £150m 15-year outsourcing contract with Blackburn with Darwen Council, but won further technical services work in a six-year deal worth tens of millions.

Borough finance boss Cllr Andy Kay said the council, which has underwritten the rental income of the building sold to Legal and General for £9.1m, will not lose money on the letting.

Politicians and business leaders welcomed the deal.

They hope it paves the way for further leases to occupy the block at the centre of the Cathedral Quarter which includes the 60-bed Premier Inn Hotel, landscaped piazza, festival square and the first suite of clergy accommodation at an English cathedral for 600 years including a Cafe Northcote eaterie.

Blackburn with Darwen council regeneration boss Cllr Phil Riley said: “We are absolutely delighted to have let the first part of this office block.

“There have been several weeks of hard negotiation with Capita over the detail.

“We are in the advanced stages of negotiation with several other potential tenants. It is all about momentum.”

Capita regional director Ian Richardson said: “We are really excited about One Cathedral Square.

“It is an outstanding location and a fantastic place for our staff to work.”

Borough Tory leader Cllr Mike Lee said: “I was worried this office block could become an expensive white elephant for the borough. This has eased my fears.”

Blackburn Chamber of Trade president Tony Duckworth said: “I am pleased finally somebody is going to move into the ‘glass palace’ which has looked like a difficult let.”

Mike Damms, chief executive of East Lancashire Chamber of Commerce, said: “This is good news for Blackburn.

“It was always important to get the first tenant in the office block.

“The fact that Capita, a national FTSE 100 company which knows Blackburn well, has chosen the town is a really positive sign.”

LibDem leader, Cllr David Foster, said: “I am pleased they have let the first space in the office block and I am happy that Capita are the first tenant.

“They are now going to have to sell the rest of it hard.”

Blackburn BID manager Harriet Roberts said: “It is great news that the first complete floor of One Cathedral Square has now been let.

“We are excited that we will be using Cathedral Square for the Countryside Comes to Town event in June.”

Announcing the deal today, borough deputy chief executive Denise Park, said: “One Cathedral Square is at the heart of the new multi-million-pound Blackburn town centre improvements.

“It’s about building on our proud past, nurturing the new and thinking big and bold for the future.

“It’s especially fitting that part of the office will now be home to some of Capita’s technical services.”

Borough resources boss Cllr Andy Kay said: “It is a commercial deal in the same way as it would be for any other tenant.

“There were no favours involved.

“The council will not lose any money on the deal.

“The rules surrounding local authority finances are very strict and we would not do, or be permitted to do anything, else.”