CASH has been secured to help kick-start a flagship regeneration project in Lancaster.

Lancaster City Council has received funding from the Northwest Regional Development Agency for the Luneside East scheme to enable it to acquire the site and prepare it for development by the private sector.

The council aims to transform the site into a high quality mixed-use development by creating a new neighbourhood on the quayside below the Castle.

It will include 350 new homes, workshops and offices, and leisure facilities.

After an intensive period of activity, the Council and its funding partners are now geared up to deliver the regeneration of this key site, including the comprehensive removal of contaminated land and materials.

A developer will be appointed early next year and a fixed timetable for the rejuvenation will be drawn up.

Leader of the Council Ian Barker says: "The Luneside East Project is a genuine example of truly sustainable community led regeneration. When completed it will totally transform this underachieving area and set the standard for possible future redevelopment further down the quay.

"I am delighted that five years of hard work by the council and its partners has secured the public money necessary to carry out this ambitious project and that the people of Lancaster District will soon be able to benefit from the improved economic prospects this scheme will deliver," he adds.

And Ian Whittaker, NWDA Area Manager for Lancashire, says: "Luneside East has the potential to become a real jewel in the crown for the City of Lancaster.

"Its location between Lancaster's Quayside and the City Centre presents a fantastic opportunity for private sector led re-development to make a real and lasting impact in the area.

"Public sector intervention to unlock that potential is crucial on such a complex brownfield site and the NWDA is very pleased to be supporting this development. This impressive development will add to significant regeneration already achieved around the Millennium Footbridge, and further boost Lancaster's growing reputation in the Northwest as a vibrant, high quality location in which to live and to do business."