The first phase of the £18 million revamp of Manningham Mills will create 160 apartments, it emerged today.

The architects of the scheme believe they will find buyers for the flats among young professional couples, local Asian people and 'empty nesters' whose children have left home.

"We need to restore confidence, but as time goes by people will see the beauty of the buildings and they will be an attractive place to live and work," said Bill Maynard, director of developers Urban Splash.

The award-winning company, which bought the derelict landmark in July, submitted detailed plans yesterday to Bradford Council's planning department, along with an application for listed building consent to revamp the Grade II building.

The move follows months of discussion between Urban Splash, Bradford Council, the Manningham Mills Community Association, and regeneration agency Yorkshire Forward.

And the grandiose scheme is dependent on Yorkshire Forward making a contribution of £5m towards the £18m costs.

If that is agreed, building work on phase one of the development could start in August, and be finished by 2004.

The first phase would involve the conversion of part of South Mill to create 160 apartments, 21,000 square foot of commercial space, and room for the Manningham Mills Community Association.

The company has also applied for outline planning permission for future phases two, three and four - further commercial and residential space, car parking, landscaping, and some new buildings at the rear of the site.

The famous chimney and much-loved south-facing facade onto Lilycroft Road will be unchanged and the chimney will be lit up at night, to make it even more of a landmark.

Previous rescue schemes for the outstanding buildings have collapsed. Mr Maynard said the £5 million grant needed from Yorkshire Forward was one hurdle; he also anticipates some opposition to the planning application, which includes demolition of some buildings, and replacement with new.

"Obviously, everybody is concerned we do a good-quality restoration on the buildings, and we are pretty convinced our scheme does that.''

The planning application will be considered by Bradford Council's planning committee in the New Year.