The council leader says the area could become the new Albert Dock
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The Weavers' Triangle area in Burnley is to receive a £1.95 million lottery cash boost to give the abandoned mills a new lease of life.
The money will go towards transforming the historic Victoria Mill, among other buildings, into a mix of restaurants, bars, flats and offices.
It is hoped this initial cash injection will also attract investment from other local business and the private sector.
The North West Development Agency say the site has "real potential".
Burnley Council leader Gordon Birtwistle said: "This is great news for the council. Weavers' Triangle shouts potential.
"It has all the right ingredients to become Burnley's equivalent of 'Salford Quays' or Liverpool's 'Albert Dock' - great motorway links, canal-side locations and history in every brick."
New life
Known as the sleeping giant by industry insiders, it is hoped the Heritage Lottery Funding (HLF) will attract a further £4 million from other sources and a massive £70m of private sector investment.
Running over five years, the scheme will make grants available to property owners and occupiers to repair historic buildings, to re-instate original architectural features and to bring vacant floor space back into use.
Peter Fellows, Heritage Lottery Fund Casework Manager for the North West, said: "Heritage is essential to the very heart and soul of a place.
"By breathing new life into the buildings that Burnley inherited from the cotton industry, the scheme will be a catalyst for further investment and a renewed sense of pride in the area."