Hundreds of jobs would be created at the site in Shrewsbury if funding is approved next year, with the first phase of work pencilled in to be finished by 2015. The news has been welcomed in the town.
Councillor Alan Mosley, chairman of the Friends of the Flax Mill Maltings, said today the partners behind the regeneration project were 'very, very confident' the money would be granted, resulting in the massive jobs boost.
His comments come after a new planning application, including plans for the Dye and Stove House part of the site, revealed one of the aims of the overall regeneration project was to create 'a vibrant place to work bringing around 1,000 new jobs to the area'.
Campaigners hope to see businesses, arts groups, bars, restaurants and eventually homes created at the site if funding can be secured.
It is hoped £11.6 million can be obtained from the Heritage Lottery Fund, with up to £6 million potentially available from the European Regional Development Fund, as part of aims to secure the money needed for the first phase of the project.
Councillor Mosley said he anticipated up to 1,000 new jobs could come to the area as a result of the redevelopment.
"When the whole thing is done, that would be about the right figure," he said.
"It is going to be a massive source of regeneration for Castlefields, Ditherington, northern Shrewsbury and the whole town.
"It will be a massive boost to the area and economy. The second stage application goes in in March and then in June we will learn if we have been successful.
"Everyone is very, very confident that is the case and look forward to work starting later in the summer, with completion in 2015.
"It just goes to show what a wonderful project this is. It will bring many commercial businesses and office jobs to the buildings.
"The other major benefit is it will be a massive attraction for visitors and a great boost for the economy."