The former Park Hotel which overlooks Miller Park in Preston is set to become a hotel once again.
A deal has been approved between Lancashire County Pension Fund and Lancashire County Council, subject to conditions, to transfer the building to the pension fund, which will finance a redevelopment of the site.
The plans include the demolition of the 1960s office block on the site, replacing it with a brand new building, which will extend the hotel, providing high quality conference and office facilities.
The former Park Hotel building will form the centrepiece of the new development.
Planning permission will be needed for the scheme to become a hotel and an application will be submitted shortly to Preston City Council as the local planning authority.
The East Cliff site is currently owned and used by Lancashire County Council, but will become surplus to requirements as the council reduces the number of buildings it owns, as part of delivering its savings programme.
"It's another development that, together with the huge amount of activity and investment surrounding the City Deal, tells potential investors that this area is on the up and looking to the future.
County coun Kevin Ellard, chair of the Lancashire County Pension Fund, said "I'm delighted that our Pension Fund's property managers have been able to secure this excellent development, which will bring this iconic part of the Preston landscape back to its original use.
As part of the wider plans to regenerate the area, the bridge on East Cliff will be replaced. Following the agreement to transfer the property, a planning application will be submitted to Preston City Council to replace the bridge with a new structure, which is in keeping with the surrounding conservation area.
The redevelopment of the site represents a substantial investment in the city centre, which supports the work of the £434m Preston, South Ribble and Lancashire City Deal to address strategic transport infrastructure challenges and deliver new jobs. City Deal aims to deliver improvements to roads and public transport, making it easier for people to get around and bring new people into the city, which benefits the local economy.
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