A DEVELOPER has ended years of uncertainty over the future of a town centre site by signing a deal to create an £18million shopping and leisure complex.

Work on the old steelworks in Lower Audley, Blackburn, is due to start within weeks and up to 300 jobs could be created by Peel Holdings.

The deal is being described as 'another piece in the jigsaw of Blackburn town centre.'

Peel Holdings, headed by Rossendale-based John Whittaker, has assembled a 10 acre site stretching from the rear of Blackburn Railway Station to Lower Audley.

Blackburn with Darwen Council agreed to sell land it owned to the developers when it was satisfied with the project.

The first phase of the new development is the shopping section, with low-price retail membership chain Matalan and stationery giant Staples both confirmed as tenants for the site.

Phase two, a larger area of the site will be marketed for leisure use, with possibilities including a bowling alley, multiplex cinema or health and leisure club.

It will complement the existing Peel shopping site on the other side of Lower Audley. The company also owns the Trafford Centre.

Coun Ashley Whalley, Executive Member for Regeneration for the borough, said: "This is a tremendous boost for the Town Centre Action Plan.

"The plans to regenerate Blackburn and improve the town centre environment are taking shape.

"Peel has already purchased shop premises on the edge of the Audley site allowing the businesses to relocate and take up better trading positions.

"I understand the shops will be demolished soon opening up the site ready for the new development.

"The transformation of the Lower Audley site has always been seen as key to the extension of the town centre. Now that vision is soon to become reality which will prove an additional draw for both existing town centre shoppers and new customers alike. It is a credit to everyone from the Council and other businesses in the borough that this new investment has been brought to our borough."

Adam Higgins from Peel Holdings said the company was attracted to the borough in part by the regeneration proposals for Blackburn Town Centre.

He also said that the development would "complement the existing Peel retail park near by and it is hoped that this would help transform the Lower Audley Street area into a major regional shopping experience".

Mr Higgins said: "The Lower Audley site represented a major development opportunity as it is such a large site.

"We have worked long and hard with the Council to make this development possible. The Council's Town Centre Action Plan coupled with other developments such as the railway station refurbishment and improvements to the road networks is part of the reason Peel is keen to invest in this borough."

Coun Whalley said planning permission had already been given and work is set to begin on phase one within weeks.