Proposals for the 3.5-acre site include retail units, managed workspaces, a heritage centre, apartments, restaurants, a cinema and a public events area.

Hambleton District Council and Hull-based regeneration company Wykeland Group have formed the joint venture Central Northallerton Development Company to promote regeneration in the area.

Wykeland Group is currently working on detailed plans for a planning application to be submitted in Q1 2018.

Northallerton Prison – which was built in 1780 – closed in 2013.

In 2014, Hambleton District Council bought the site from the Ministry of Justice.

A number of buildings on the site have been demolished and extensive archaeological works have been carried out, which led to the discovery of the foundations of what is claimed to be the world’s largest treadmill.

Dominic Gibbons, managing director at Wykeland Group (pictured above, right), said: “With the formal structures for the development company in place, we can now move forward together to deliver this very exciting scheme.

•   Harworth Group given green light for redevelopment of former Thoresby Colliery
•   L&G to fund £35m Headingley redevelopment
•   131 new homes to be built on former garage and pub sites

“We’re really looking forward to working closely with the local authority’s members and officers to bring an important part of Northallerton’s heritage back to life and deliver significant economic and community benefits to the town and its people.

“Although the development is in its early stages, we have had significant interest from commercial operators who recognise the potential of this project.”

Justin Ives, left, and Dominic Gibbons inside a cell block which will be incorporated within the redevelopment

DWF acted for Wykeland Group on the legal agreement, while Trowers Hamlin advised Hambleton District Council.

Justin Ives, chief executive of Hambleton District Council, added: “This site gives us a once-in-a-lifetime opportunity to not only support and strengthen the retail and leisure economy of Northallerton, but to benefit the whole of the Hambleton district.

“Wykeland shares our goals to create a high-quality scheme which will benefit the whole community, so we are very much looking forward to working with them.”