A COUNTY town which was dealt “devastating” blows when the Government decided to close a prison and relocate a civil service office will bounce back with an improved central area designed for 21st century, a council leader has said.

When work starts on building the £17m Treadmills project in Northallerton in March, it will mark a significant turnaround for the area from five years ago, when Northallerton Prison closed after 230 years with the loss of 135 jobs shortly after the nearby Rural Payments Agency unveiled plans to relocate 350 jobs.

At the time, the town’s mayor expressed fears for the economy, while a Prison Officers Association spokesman added: “The closure of Northallerton will devastate this community. It is a massive blow.”

In response, Hambleton District Council stepped in to buy the site and teamed up with developers the Wykeland Group.

Following public consultations, the council’s planning committee has passed a scheme for the site that features a supermarket, a four-screen cinema, homes and office space as well as a large public square. The first phase of building work will see a store built for Lidl on the southern end of the site.

Chairman of the board overseeing the development, Councillor Peter Wilkinson said the project would be exciting not just for Northallerton, but the area as a whole.

He said: “It will generate more activity in the town centre with people coming to visit the shops and enjoy the leisure experience we will offer through the restaurants and cinema.”

While concerns remain for some over the treatment of the historic parts of the prison, the redevelopment scheme also incorporates five grade II listed buildings retained when the remainder of the prison site was demolished.

The authority’s leader, Councillor Mark Robson said while the scheme respected the buildings’ heritage, but the site could not be preserved in aspic. He said he remained confident about getting funding to help encourage shoppers to pass between Treadmills and the High Street.

Cllr Robson said: “It is the county town of North Yorkshire. We have to got to move with the times, we can’t just leave redundant buildings. If we hadn’t done anything with the prison site it would have been a pile of rubble.”

He said the authority would work with Northallerton Forum to ensure the cinema element of the redevelopment did not affect the viability of the Forum.