Manor Property Group is to push ahead with its extensive £100 million mixed use Manor Mill development and is currently in the process of awarding a contract for the demolition of Clarence Mill and associated buildings on the east bank of the River Hull next to Drypool Bridge.

The 480,000 sq ft scheme received planning permission in November 2008 and incorporates a 23 storey residential tower, which will be Hull's tallest building. A student accommodation building will provide tailor made living space for 590.

The Hotel will have185 bedrooms, along with a brand new Casino, a public plaza and four restaurants, a sports bar, convenience store and 325 car parking spaces. The development will create hundreds of jobs and breathe new life into the stalled regeneration of the city centre.

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Philip Akrill of Manor Property Group said: "Awarding the first of many major contracts to develop this site is a significant move for the company and for Hull. The recession has hit the development industry hard and is not over yet. We feel fortunate to be in a position to commence works.

"Manor Mill is one of a number of key strategic sites currently being developed by Manor in Hull; however it is by far the most ambitious. We hope that our initiative sends out a positive message to others, the development will not only create numerous new facilities for the city but re-energise the east bank."

Apollo Casino Resorts will be making an application to secure the casino licence for the scheme - the first of the large casino licences announced in the UK following the Government's new gambling legislation in 2005. The £25-million casino will be built under the planned public plaza which will also be fronted by four national branded restaurants, all new to the city, as well as 325 dedicated safe car parking spaces.

Apollo Resorts and leisure chairman Paul Gregg said: "We have formulated our plans for the site and are ready to work with Hull City Council to hopefully secure their confidence in giving us the licence. This is an excellent scheme that will offer a significant boost to the local economy."

(CD/GK)