The £30 million regeneration of Shrewsbury’s historic Flax Mill moved a step closer today after a planning application was submitted for the site.

The 18th century grade I listed mill in Ditherington could be transformed, creating housing and social and leisure opportunities if the scheme is given the go-ahead.

Plans have been in the pipeline for years for the redevelopment of the former maltings site, although the project has faced uncertainty because of the recession.

Three applications have been submitted by Shropshire Council, including an outline application for the repair and reuse of historic buildings to create workspace and cultural activities; retail/commercial, office and residential development; associated access, landscaping and car parking and demolition of non-listed buildings.

The second full planning application is for the repair and alterations to the grade I listed buildings including the demolition of the north silo and demolition of all non-listed buildings on the Spring Gardens sites.

The third application is for listed building consent.

The applications will be considered by the council’s planning committee later this year.

Up to £17 million of public funding still needs to be found and possible sources are now being explored for the development, including Heritage Lottery Funding and European cash.

Councillor Malcolm Price, cabinet member for housing, today said: “The Ditherington Flax Mill is an internationally important collection of historic, listed buildings and there is a strong desire within Shropshire Council and our partners to make the development happen.

“There is clearly still some way to go to make these plans a reality but I’m delighted that the planning and listed building applications for the development of the Flax Mill site have now been submitted.”

Alan Mosley, councillor for Castlefields and Ditherington, said he believed that it could be a “landmark” development for the town.

He said: “A great deal of hard work is going into the restoration of the much loved Flax Mill or maltings as a centre for working, learning, commerce, culture and community activity and it is now a step closer to reality.”

By Russell Roberts