A decaying mill is set to be transformed into more than 100 flats.

It is hoped the homes at Oswin Mills, Gaisby Lane, Shipley, will boost the reinstatement of Bradford Canal after councillors approved the development yesterday at a meeting of Shipley Area Planning Panel.

The development will see the mill converted into 52 apartments and the demolition of an industrial buildings on the site will pave the way for a block of 54 apartments with new parking.

Speaking after the meeting at Shipley Town Hall, panel chairman Councillor Robin Owens said: "It fronts on to the proposed canal so it will make a major contribution to the development of the canal project and we are all pleased about that.

"It's just out of the city and it will have a nice sort of canal bank feel about it. It will be a nice place to live. It has been hard work and the officers have put in a lot of hard work in the background."

It is hoped the development will boost the economy in Bolton Woods and kickstart further development in the area.

Developer Richard Padgett, of Ilkley, will have to pay £228,000 up front towards reinstating the Bradford Canal which used to run along the western edge of the site - providing it goes ahead within seven years of the first payment.

If the canal project does not go ahead within seven years, the money will pay for affordable housing.

In addition to this the Council will also net a share of the new development's profits.

A Council planning spokesman said there was an agreement which is based on the profits they make out of the sale.

He said: "The developer makes a certain base level percentage of profit and then anything above that is split between the Council and the developer."

Councillors also insisted, yesterday, that natural stone must be used in the development.

Mr Padgett is represented by award-winning Bradford architects Waller and Partners.

Waller and Partners managing director Ian Biggins said: "It will be a catalyst for the revival of the Bolton Woods area.

"It's very good news and we look forward to another successful mill development in Bradford."

It is also hoped the transformation of the site will attract more investors to an area without its own shops.

e-mail: fiona.evans@bradford.newsquest.co.uk