Blackburn with Darwen Council has begun the process of acquiring Imperial Mill in a bid to secure jobs and the future of the building itself.
The mill, built in the early 1900s is currently owned by Lancashire Saw Company, which employs 35 staff based on the first floor.
As part of the sale, the company will be offered a 15-year lease to remain in the property, while the council will become responsible for its restoration.
The mill sits on land which is key to the council's proposed Blackburn Growth Axis, part of a £1bn vision for the town. It also sits beside the Leeds-Liverpool Canal and has been discussed as a possible site for a cultural hub.
The sale would also include the gatehouse, home to a printing firm, and 1.5 hectares of land. Officers are now seeking approval from the council’s Executive Board to progress the sale.
Coun Quesir Mahmood, executive member for growth and development, said: "This is a landmark building – an impressive and characterful former cotton spinning mill built at the turn of the 20th Century when ‘cotton was king.’
"It’s an important part of the borough’s and wider Lancashire’s heritage – reflecting Blackburn’s identity and distinctiveness.
"As a council, it’s important that we do all we can to safeguard buildings like these where we can and use them to help create jobs for the future while also looking at improving our place and looking to make the most of cultural and environmental opportunities too."
The directors of Lancashire Saw Company Ltd said: "We are delighted to have come to an interim agreement with the council to purchase and develop Imperial Mill.
"This will safeguard the future of Lancashire Saw Company Ltd and its employees for the foreseeable future and we are excited that the mill will be developed and restored whilst still being in situ.
"We have been manufacturing in Blackburn for 80 years and purchased Imperial Mill in 1982. Whilst we have been able to maintain the areas we use to keep them in good condition, we recognise that we are not in a position to safeguard the future of the entire building so the agreement with the council to develop and implement a longer-term restoration and development strategy for site is a perfect solution."
Imperial Mill was designed by architect Sydney Stott and cost in the region of £120,000. By 1906-07, it housed 90,000 Howard and Bullough ring spindles - when spinning ceased in 1980 there were 33,000 spindles and 307 employees.
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