One of Yorkshire’s biggest mixed use development schemes to start since the credit crunch is under way in Skipton.

The developers say it will offer businesses accommodation costs of 40 per cent below major cities.

The £25m redevelopment of the historic Belle Vue Mills will create 80,000 sq ft of office and leisure space, including a new council chamber and offices for Craven District Council, together with a new register office.

Building work has started at the Broughton Road site by North Midland Construction, for Leeds-based property company Rushbond, which took over the development in June from Novo Homes, which created the Glista Mills apartments at the same site.

The whole complex will create more than 150,000 sq ft of commercial, leisure and residential space surrounding a new landscaped square with public art.

The 80,000 sq ft building, to be named Craven House, has already attracted interest, with 40,000 sq ft being let.

Another 30,000 sq ft has been taken by Craven District Council and North Yorkshire County Council, which will occupy the ground, first and second floors in the north and west wings to create a new civic centre for Skipton due to complete in Spring, 2011.

A further 10,000 sq ft in the north wing has been pre-let to international medical healthcare staffing company Medacs Healthcare plc, which will be opening its first base in Yorkshire.

The remaining 30,000 sq ft of office accommodation has space available from suites of 2,500 sq ft. Strong interest is also expected for the east wing ground floor, earmarked for three leisure units, shops or a cafe, with potential to expand into the landscaped square.

Belle Vue Mills, next to the Leeds-Liverpool Canal, was built by John Dewhirst in 1828 and opened as a spinning and weaving mill. It later became a cotton mill and was one of the town’s major employers..

Mike Hartley, Rushbond development director, said: “We believe that Belle Vue Mills will become a location of regional significance.

“The ability for companies to conduct business electronically means that it is no longer imperative to be based in cities and Craven House will offer 1gb of high-speed broadband which is not available to most office occupiers in Leeds and Bradford.

“This scheme, within easy reach of Leeds, Bradford and Manchester, means that companies can provide attractive working conditions at the gateway to the Yorkshire Dales at costs perhaps 40 per cent below many modern cities.”

Rushbond Plc has 25 years’ experience in the refurbishment of listed and heritage buildings, making them viable for modern use.

The company was responsible for the £120m mixed-use Brewery Wharf scheme in Leeds, which led redevelopment of the south bank of the River Aire; the Airport West office park next to Leeds-Bradford International Airport and the new northern BBC headquarters in Leeds.