AN HISTORIC building at the heart of Blackburn's flagship Church Street regeneration may remain empty until 2008, it was revealed today.

The revelation came as Blackburn with Darwen Council admitted the council has had trouble attracting the right type of retailer to the street's third pavilion.

Critics said the project has been an economic disaster, especially as the tenants in the other two buildings had each been given £40,000 and up to six months free rent to get them started.

Coun Andy Kay, executive member for regeneration, said once the £45million re-development of The Mall was completed in 2008, Church Street would become a busy thoroughfare and the pavilion would be snapped up if they had not already been by then.

Blackburn's shopping centre will have shop fronts on to the street, which council bosses hope will increase footfall in the pedestrian zone.

"We are not prepared to let it just for letting its sake or to have a discount household goods store," said Coun Kay.

He said the council had turned down offers, and a deadline had not been set for the pavilion to be let.

The three pavilions stood derelict for more than 20 years before a £1.3million project to restore the Grade II-listed Georgian buildings.

Finding businesses to occupy the buildings was difficult and it took more than a year before the first was filled.

Alan Rene Hair and Beauty Salon and Cafe Beees operate in two buildings and another housed parts of the C21 art exhibition that ended this week.

"We have said we will not put competing uses in there, we are being very choosy to be frank," added Coun Kay.

But Tory leader Coun Colin Rigby said the first two premises had been given £40,000 each to help fit out, and between five and six months free rent.

He added: "We were given a grant of £1.3million to do these buildings up but we have already given away ten per cent of this.

"While I they are absolutely wonderful buildings, in economic terms they have been a disaster. Hopefully when the Mall is done it will be a prime location."

Coun Paul Browne, leader of the Liberal Democrats, said even if a lower quality store had to be moved in, the pavilion should be let as soon as possible.

"I walked down Church Street the other day and I was appalled, I saw no one there. Until we get the Mall up and running it's going to be dead," he added.

Coun Kay said the building might be put to use for other public uses, such as art exhibitions, while an appropriate occupier was found.