The developer has submitted an outline planning application for a mixed use development at the former Lambert Howarth site in Burnley.
St Modwen is working in close consultation with its partners, Burnley Council, English Heritage and The Prince's Foundation on the project.
The development aims to deliver 168 homes, new retail space and offices at the seven-acre site.
St Modwen said the plans allow for the retention and incorporation of the façade of Finsley Gate Mill into the future development. The developer added this will ensure the new development is in-keeping with the surrounding Weavers' Triangle conservation area and retains as much of Burnely's industrial heritage as is possible.
Richard Bakes, development manager at St Modwen, said: "We are very excited at the prospect of regenerating this superb canal-side location in a way which reflects the historical context of the site, but will create new, modern accommodation for the people of Burnley to enjoy.
"We take the heritage qualities of the area very seriously and have worked closely with our partners to get to this stage. We look forward to pressing ahead to deliver what will be an outstanding development."
Cllr Charlie Briggs, leader of Burnley Council, added: "We have got developers interested in the Weavers' Triangle and St Modwen thought it was the right time for them to press on."
St Modwen acquired the site formerly belonging to the footwear and accessories manufacturer, Lambert Howarth, for an undisclosed sum in April 2004.
Subject to obtaining the necessary consents from Burnley Council, it is hoped that a programme of works will start next spring.
The Weavers' Traingle area covers 7.2 acres around Sandygate and is designated within the Canalside Conservation Area straddling the Leeds-Liverpool Canal.
A development prospectus for the transformation of the historic industrial area on the edge of the town centre into a 1m sq ft mixed-use scheme was published by Burnley Council in July this year.