SHREWSBURY’s bus depot has been snapped up by Shirehall chiefs in a £2.3 million deal after four years of negotiations – paving the way for the redevelopment of the Flax Mill.

A deal between Shropshire Council bosses and transport firm Arriva will see the bus depot in Ditherington demolished to make way for the £30 million redevelopment of the Flax Mill site.

The sale figure is £1.2 million less than a compulsory purchase order put on the site in 2007 by the former Shrewsbury and Atcham Borough Council would have cost, and Shropshire Council officers have described it as a “significant saving”.

It comes after Shirehall officials today revealed they had submitted a £300,000 bid to the Heritage Lottery Fund as part of a plan to unlock up to £12.5 million to regenerate historic buildings at the Flax Mill.

The bus depot is expected to move to a new site next to the Tesco Extra store and Park and Ride site on Battlefield Road which should be built by spring 2012.

Richard Lawrence, growth point manager for Shropshire Council, said the deal to buy the depot and the social club meant the authority was in a good position to progress plans to transform the 18th century mill. Proposals include homes, shops, offices and even a link to the old Shrewsbury-Newport canal.

Mr Lawrence said: “Arriva will remain as a tenant at the site until it transfers to the new depot. It was a compensation deal and it was about re-negotiating with them. As part of the CPO it was around £3.5m but we have managed to get that down to £2.3m so it’s a significant saving.”

Bosses at Arriva today said they were delighted the matter has been resolved and said they were looking forward to moving to their new purpose-built facility.

Andy Pearce, acting general manager for Arriva Shrewsbury, said work on the new depot, which will feature 78 bus parking bays and 38 car parking bays, would start in May and it would open next April/May.

Mr Lawrence said the council would find out in April whether its bid to the Heritage Lottery Fund had been successful.

He said if the bid was approved it could see the council unlock millions to regenerate the Flax Mill site.

By Russell Roberts