The proposals for Whitworth Mill and surrounding land on the banks of the River Nene, which is set to be sold to Bedford-based property development company Samsons, has been warmly greeted by business leaders.
If the development is approved and completed it will end a 30 years wait to regenerate Fletton Quays.
Tom Hennessy, chief executive of economic regeneration company, Opportunity Peterborough, said: “Fletton Quays has set a high standard for regeneration around Peterborough city centre and the sale of Whitworth Mill is an important milestone.
“It’s great to know that a building with such heritage will become an asset for all to enjoy and bring real vibrancy to the area.
He added: “As one of the fastest growing cities in the country, plans for the site reflect growing demand for residential and commercial property, whilst also supporting the visitor economy and cultural offer.
“This is a welcome investment into the city at a time when we are facing unprecedented economic challenges.”
John Bridge, chief executive of Peterborough Chamber of Commerce, said: “This is a long overdue moment for Peterborough. The completion of Fletton Quays shows the extent of commercial interest in Peterborough.”
Samsons, which was one of four bidders, made the highest unconditional offer for the mill and its surrounding land.
The mill occupies about 22,642 sq ft over four floors and sits on a 1.41 acre site and was put on the market by Peterborough City Council in October last year.
A report to councillors states that Samsons plan to use part of the Mill building as a company office for up to 15 staff.
It also intends to develop a boutique hotel on the upper floors and seeks to pursue arts related uses on the ground floor with an area of external space used as an arts performance space.
The company has set out proposals for the surrounding site and intends to build a four blocks of a similar height to Whitworth Mill with boutique hotel uses on the upper floors and A3 restaurant, food court space on the ground floor. The decision to sell the Mill and surrounding land has still to be approved by councillors. If approval is granted, the developer must submit a planning application in 18 months.”