A derelict historic cinema could be transformed into a £7 million apartment complex in the latest phase of the regeneration of the Leeds-Liverpool Canal side.

In its heyday, Shipley's spectacular art deco Glenroyal Cinema, as it was known, attracted hundreds of cinema goers who came to see newly-released "talkie" films of the 1930s. The impressive brick-built building in Briggate was turned into a bingo and trading hall but it later fell into disrepair.

Now a Saltaire-based development company has drawn up plans to demolish the crumbling relic and build canal-side flats and shops for young professionals.

The proposals, which have been submitted to planners at Bradford Council, are to create 78 one- and two-bedroom apartments with views of the canal and 6,600 square feet of commercial space.

A parade of new shop-fronts would feature on the ground-floor level below five storeys of flats. There will also be two basement levels underneath the shops. The snooker hall next door, which is now closed, will also be demolished.

Tony Lupton, of Beckwith Design Associates, the architects behind the scheme, said building work could start as early as the new year.

Mr Lupton said: "The Glenroyal building is a re-use of a brown-field site which will provide quality accommodation and will also provide employment because of the commercial aspect."

The architects have been behind a number of projects including 450 apartments at Victoria Mills in Saltaire and the Berry Works development in Otley Road, Shipley, of 120 apartments and 5,000 square foot of offices.

Coun Martin Love (Green, Shipley), agreed the building had become an eyesore but questioned whether the development of apartments for young professionals had reached "saturation point".