Millions of pounds may be set aside to help redevelop crumbling Manningham Mills after a major cash boost from the Government.
Bradford is due to receive £23 million for local projects - £5 million of which could be used to rescue the crumbling Victorian mill.
The city is one of 30 areas in Britain to receive the grant from the Government's new Neighbourhood Renewal Fund which will tackle problems in the most deprived areas in a three-year scheme.
It would be boosted by European funds and cash set aside from major regeneration schemes already being carried out in the district.
Now Bradford Vision - a partnership made up of Bradford Council and other leading organisations - believes several million pounds could be allocated to help restore the famous mill which has stood empty for years.
Developers Urban Splash want to develop flats, business units and a call centre which could bring about 1,000 jobs to the area.
But the scheme has been held up while developers seek ways of filling a £5 million gap in the funding they are able to provide.
The listed building - which is still used by Manningham Community Association - is deteriorating and open to the weather after large areas of the roof were stripped by thieves.
Bradford Council's executive committee will consider tomorrow how the programme - to be co-ordinated by Bradford Vision - should be implemented.
Grass roots community projects are likely to get grants or could end up with contracts for providing services.
The aim will be to support local projects to improve job creation, crime prevention, education, health, housing and the environment.
Areas which will be targeted will include Manningham, Girlington, Newlands, Holme Wood, Horton Grange, Shipley East, Barkerend, Leeds Road, Keighley, Bowling, Marshfields, Odsal, Little Horton and Bierley.
Executive committee member for the economy Councillor Simon Cooke, pictured in front of the mill, said: "We are hoping to put Manningham Mills into the programme by linking it into development of the community.
"Parts of the district suffer deep seated economic and social problems which can only be solved through partnership with local communities.
"The Neighbourhood Renewal Fund will provide an important source of funding for community led projects in regeneration areas and across the district as a whole."
The Council says further details of how community groups can apply for funding will be available in the next few weeks.
Councillor Cooke said: "One of the problems when we approached Yorkshire Forward to try to get help was that the Council was also expected to put funding into the scheme.
"Now that we are able to do that it may make a difference and there could be something else from that direction."
Riffat Akram, a member of the management committee of Manningham Community Association said: "It is absolutely wonderful news.
"Time after time we have been hopeful and things have reached stalemate over the funding."
Ward Councillor Stanley King (Con, Heaton) said: "If this is going to happen it is a very important step for both Bradford and Manningham.
"This is happening at an extremely significant time. It could physically rebuild and safeguard one of the most important buildings in Bradford.
"If rescue has arrived for Manningham Mills it has only arrived in the nick of time."
but he said enthusiastic local support was needed for the redevelopment.
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