£50m town building project starts

The Bath House project received planning permission in 2006

Work has started on part of a £50m scheme to build flats, a supermarket, a hospital and a GPs' surgery in Ceredigion after years of dispute.

Cardigan's controversial Bath House project is expected to create 600 jobs.

As part of the first phase, 48 flats for people aged 55 and over are being built, and they are expected to be finished by Christmas 2010.

A dispute over a strip of land and traffic issues, which had delayed the project, was resolved in December.

Ceredigion council said the flats, which are costing £8.8m, will be completed by Christmas 2010, with residents expected to move in during the first part of 2011.

The flats are part of a scheme by the Welsh Assembly Government, called extra care housing, to provide better accommodation for older people.

Traffic problems

"The concept of extra care housing is centred around older persons having their own self-contained accommodation and ready access to care and support when needed," said Ann Rees, Ceredigion council's assistant director of housing.

The scheme to redevelop the Bath House area in Cardigan was originally granted planning consent in September 2006 following a public inquiry the previous year.

But it hinged on a strip of land owner by T Ieuan Davies, who refused to sell it to developers Liberty Mercian because he feared the development would add to Cardigan's traffic problems.

However, an agreement was eventually reached and the dispute was resolved.