TWO of Blackpool's most loved gay venues are set to make way for a major regeneration scheme.

The Flying Handbag and The Flamingo have both been bought up by Blackpool Council as part of the proposed Talbot Road regeneration scheme.

Former owner, entrepreneur Basil Newby, plans to move the venues into the same building as Funny Girls on Dickson Road. His firm, In the Pink Leisure, has applied for planning permission to extend the former Odeon Cinema to accommodate the attractions.

The regeneration project will cover a wide swathe of land at the edge of the town centre, including the bus station and the former St John's Market. It will feature a range of retail units, a new bus station and, it is hoped, a supermarket to serve the north end of the town.

And, despite the fact that plans to use casinos as a 'catalyst' for major regeneration remain up in the air, there are a number of Masterplan projects which are beginning to take shape.

A public inquiry is also due to start this month into a proposed compulsory purchase order on properties which are earmarked to make way for a major redevelopment of the Hounds Hill Shopping Centre.

The inquiry, expected to last six days, takes place at Blackpool Town Hall from Tuesday, November 30, and there have been a number of objections.

There are also high hopes that major work on reconstructing Blackpool's seafront as part of sea defence schemes will begin in earnest next year.

Work is also continuing on the demolition of Bloomfield Road bridge and an overhaul of the area around Seasiders Way.

The organisation set up to manage Blackpool's regeneration is also making progress. The shadow urban regeneration company (URC), led by Sir Peter Hall, has received approval from the North West Development Agency.

Council chiefs hope the company, which now has to be approved by the Deputy Prime Minister and the Trade Secretary, will be able to bring in a proportion of the estimated £500 million in public funds needed if the £2.5 bn masterplan is to become a reality.

"It is good news in that it would have been very bad news if it hadn't happened," said Blackpool Council's head of economic development, Alan Cavill: "The Urban Regeneration Company has to be approved by Government, but the regional development agency has recommended that it is approved.

"There is no specific amount of money involved."