A Grade II-listed building that was historically home to a giant mill in the English town of Brierfield may be developed into a luxury hotel and spa, as part of a redevelopment project costing £34m (US$51m, €43m).

The proposed 78-bedroom hotel and spa at Brierfield Mill will be set within a 380,000sq ft (35,303sq m) plot known as Northlight, being developed by Pendle Enterprise and Regeneration Limited (PEARL). The site is already home to a 71-flat retirement village run by Evermore Wellbeing, which signed a tenancy agreement with the developer in June 2014.

Already a new marina, business units and leisure facilities have been announced for the scheme, which is the biggest single development project planned for the town in the district of Pendle.

Pendle MP Andrew Stephenson told local media that private sector investors are lined up for the scheme and the council is confident that it will be able to secure a public grant to go alongside the private backing.

Council leader Joe Cooney said he understood the hotelier, which has expressed interest in managing the site, is a “well-known, upmarket chain.”

Greg Clark, Conservative MP for the region, is due to decide whether the development is to receive state funding.

Stephenson said: “A planning application is due in January and the week after that we find out if we’ve got funding. It’s taken a long time to get all the ducks in a row on this, but it’s all falling into place.”