A former Victorian mill in Bingley is to be given a new lease of life.

The derelict Britannia Mills, on the corner of Ferncliffe Road and Mornington Road, is to be converted into executive apartments and cottages.

The scheme, approved by the Shipley Area Planning Panel, has a condition attached which will see the developer give £20,000 towards recreational facilities in the town.

Bingley owners Rubicon Developments will be demolishing the modern extensions of the huge mill but will be retaining the distinctive chimney. The four-storey section alongside the Leeds-Liverpool canal will be transformed into two-bedroom apartments, with business space underneath which will possibly include a water-front restaurant and gym.

Panel chairman Councillor Robin Owens (Con, Bingley) said it was a good news story for the town.

"This is the sort of development we welcome as it will see an empty building back in use and offer town-centre accommodation," he said.

The 14,200-square-metre site will also include parking and gardens.

The developers will be building four affordable homes, 14 fewer than in the original plan because of the increased cost of clearing up contamination on the site. Panel member Councillor David Harrison (Con, Craven) said it was an ideal plan for the building.

Shipley planning officer Peter Bridgman said normally the developer would be required to provide facilities on site for children, such as a playground, but because the complex was aimed at young couples and single people the panel was able to request the money to be spent on Bingley.

The mill closed in 2000 and once employed hundreds of workers who produced worsted materials for men's suits during World War One.