THE next phase of a multi-million pound redevelopment of a town centre is underway.

Plans have been lodged to transform Rawtenstall’s dilapidated Valley Centre in Bank Street into an 80-bed hotel.

As well as rejuvenating the 1960s shopping eyesore into a state-of-the-art hotel, there are plans for housing, leisure facilities and other food and drink outlets on the site.

Also included in the plan is the creation of an area of public open space with landscape and highway works.

Council chiefs said a small cinema and a spa could form part of the development, along with cafes and restaurants.

The submission of the planning application by the Rossendale Together Barnfield (RTB) Partnership marks phase two of the £5.4million Spinning Point bus station project.

Phase one of the RTB-run scheme has already seen work take place to dismantle Rawtenstall’s former police station, the one-stop shop and annex to the town hall.

It will be replaced by an eight-lane bus station which will include some retail space.

Work has now started on the bus station and is expected to be completed next year.

Cllr Andy McNae said the submission of the planning application marked the next step in the ‘exciting’ project’.

He said: “The planning application for phase two has been submitted following a consultation with residents and businesses.

“They are both very excited about the proposals which are based on their feedback.

“The development will offer a mix of retail and leisure facilities.

“We want Rawtenstall to offer something different to other towns in East Lancashire, and we feel that a 80-bed hotel and plans for a cinema and spa would help achieve that.”

Cllr Alyson Barnes, leader of Rossendale Council, said: “I would welcome the submission of these plans which mark the next step in this project.

“They are really exciting proposals which will offer real benefits to Rawtenstall.

“We’ve tried to acknowledge that people’s shopping experience has now changed, with the mix of retail and leisure opportunities on the site.

“We’re hoping to create a modern shopping experience to encourage more visitors into Rawtenstall.”

But Kathy Fishwick, chairman of Rossendale Civic Trust said the plans were 'not viable'.

She said: "There's a lot of practicalities to be got over in terms of the transport plan to manage traffic.

"It has been written up by someone who doesn't know the town and I would urge people to read the transport plan and make up their own mind, but I think it's not viable for managing traffic from the development."

The latest plans follow a consultation with residents about phase two of the project.

It is hoped that work for the whole project will be completed by 2019.

The partnership has been awarded £1.9m from the Lancashire Enterprise Partnership’s Growth Fund and £3.5m from Lancashire County Council.