WORK has restarted on the mothballed Newhallhey development in Rawtenstall after a deal was completed by administrators.

Council leader Coun Tony Swain has heralded the decision as a positive sign for one of the valley’s gateway locations.

Half-finished shopping units have stood idle at the site for nearly 20 months after Hurstwood Developments went into administration.

The project was dealt another blow when retail giants Homebase and Argos scrapped plans to open stores at the troubled site just weeks later.

Talks have been ongoing between administrators KPMG, Rossendale Council and property agents for months.

Now contractors Morgan Ashurst have been drafted in to complete work on the initial phase of the development, off the A682.

Coun Swain said: “It has been a frustrating and long haul over Newhallhey since last year, when we were first told that work was going to restart.

“But we need to look forward now – they have got three months to complete the units and hopefully they have deals secured for them.”

Council bosses will also press for further phases of the development to progress, including expected offices, in the shadow of Hardman Mill, and more leisure units at the East Lancs Railway end of the sprawling site.

Administrator Brian Green said: “Getting to this position has been a challenging and complicated process, but I am now delighted that the completion of the first three units is under way. Considerable time and effort has been spent by the administrators, our advisors and the local council in resolving a number of planning issues that existed prior to our appointment.

“However we believe the completion of the units will provide potential tenants with an excellent opportunity to provide the local community with their products and services.”

Discussions had stalled over a clause in legal agreements, relating to Newhallhey, which stated that any developer needed to make a substantial investment in other improvement projects across Rawtenstall.