A BRIGHTER future has been pledged for a town centre that has been dominated by a jail for more than two centuries after a council sealed an agreement with the Ministry of Justice to buy a defunct prison.

Hambleton District Council aims to complete the redevelopment of the former Northallerton Prison site within five years and help counter the threat to the town's economy from the planned designer retail park at Scotch Corner.

It is also hoped the development will create a substantial number of jobs, following the loss of 600 workers with the closure of the prison in 2013 and the nearby Rural Payments Agency last year.

The authority's leaders, who are set to ratify the decision on Tuesday, have refused to disclose how much it had agreed to pay for the 3.5-acre East Road site due to contractual concerns.

It is understood the council's officers negotiated substantial savings on the original £2.7m price tag after demolition and roadworks costs were taken into account and contracts are expected to be exchanged next month.

Leader of the council, Councillor Mark Robson, said the site could be used for an array of uses, such as leisure and education, but would be likely to feature an additional retail area to complement the High Street, which could be linked with a pedestrian thoroughfare.

He said the part of the landmark wall could be retained to provide security for firms on the site and the shape and extent of the redevelopment would be partially determined by five listed buildings.

Cllr Robson added a blueprint for the site was being created from the findings of a public consultation exercise that attracted 500 visitors, and the community would be offered the chance to revise it before building work started.

He said: "By this authority owning this once-in-a-lifetime location, it puts us in the driving seat to deliver the aspirations of the residents of Northallerton and the surrounding area.

"If another developer came along, you don't always get what you ask for.

"The site could have remained empty for a number of years if we did not step in."

Deputy leader of the council, Councillor Peter Wilkinson, said the authority had pressed ahead with the scheme after being reassured by the district valuer that there was "no significant risk of not regaining the purchase price".

He said £5m had been set aside in its economic development fund for the redevelopment and any money made from the scheme would be ploughed back into the fund.

Cllr Wilkinson said: "This is not going to cost the taxpayer and I would be happy if the scheme breaks even."