IT'S D-day for Rawtenstall's derelict Ilex Mill, but if councillors vote to demolish the eyesore they could face having to repay grants secured to buy the property.

And they are urged to seek a meeting with all the parties involved with the project because they face a 'legal minefield' in seeking demolition.

The failure of Rossendale Council's £4.5million lottery bid will be officially reported and the corporate policy meeting on Tuesday, April 3, when members will be asked to decide the building's fate.

Council leader John Holt said: "Our view is we go post haste and follow the correct procedures to delist the building and demolish it, but we have got a lot of hurdles to go through before we can do that and it could take more than 12 months.

"We did get a grant to buy the property and we do not know yet whether we will have to repay it if we seek to demolish and redevelop the site."

But secretary of Rawtenstall Civic Society Kathy Fishwick, said: "They should get everyone with an interest in this property around a table to decide on the best way forward. Not just the council on its own.

"The legislation over Ilex has got so tangled it is a legal minefield. Even if the council does get the building delisted, it is still in a conservation area and so it would still be considered as a listed building in any application to demolish.

"We have tried for years to try to find out exactly what terms and conditions were set when the council took this building on."

The £290,000 purchase of Ilex from jailed tycoon Owen Oyston was underwritten by English Partnerships. Other money was provided by English Heritage.

Even if the lottery bid and other grants had been successful, it would have left a huge shortfall in the total £10million scheme.

Coun Holt said: "It is my view that the council has explored every possible avenue there was to go down to bring this building back into viable use and this will prove a good enough case to delist and demolish.

"If we can't make it happen with £6million towards it, how could a private company or organisation make it pay?

"There is obvious potential for redevelopment of that site and we will not implement any consent to demolish until we have proposals in place for the redevelopment of the land."

A spokesman for the Heritage Lottery said: "The scheme was not seen as financially viable."