It was party time in Manningham today as Bradford Council placed adverts across Europe seeking contractors to start work at Listers Mill.

The Council is preparing for the first £12 million phase of the major redevelopment of the landmark south wing with its towering chimney.

The building has stood empty for years falling derelict, being constantly vandalised and hit by flooding when torrential rain poured through the broken roof.

One scheme after another collapsed and high hopes that the building would be used as the Northern branch of the Victoria & Albert Museum were also dashed.

But now the Council is seeking tenders for the first phase which will last for a year and involves making the building fit for development of an £80 million scheme.

The specialist contractors will replace the roof, repair the building and make it weather proof. The structures of the listed building will also be checked to ensure they are strong enough to withstand development. The first phase will be funded with £6 million from Government regeneration agency Yorkshire Forward, £2 million from the Government Neighbourhood Renewal Fund which is being administered by Bradford Council and a £300,000 grant from Conservation Watchdog English Heritage.

The rest will be paid for by Manchester-based developers Urban Splash.

The scheme has been held up because of problems over obtaining "gap" funding from Yorkshire Forward after its rules for making cash awards were changed.

Now the building has been leased back to Bradford Council and complicated legal agreements have made it possible for the funding to be allowed.

Today's development was being marked with a party staged by Manningham Mills Community Association at Carlisle Business Centre to mark the start of the work this year.

The Mayor of Bradford Councillor Richard Wightman is expected to be one of the main guests, along with Council leader Councillor Margaret Eaton.

The programme includes Dioloulou Drummers (African sounds from Bradford), magician Simon Jackson, asylum seekers Boris and Boajan Sretovic from Sarejevo playing violin, flute and guitar. Folk singer and guitarist Karl Dallas will also take part.

Association chairman, the Reverend George Moffatt, said: "We are planning a very big welcome for the machines and men in hard hats when they finally arrive this year. There will be banners, festivities and we would hope to march them up Oak Lane."

The Council's executive member for the economy, Councillor Simon Cooke, said it was expected to start work on the first phase in about September and it would probably take about a year.

"This phase will be a public sector contract and when it has finished the lease on the mill will revert back to the owners.

Bill Maynard, director of Urban Splash, said: "We are making good progress and are extremely excited by this very positive news."

The mill will be transformed into 160 flats, offices, offices and space for business and community space.