THE Eastern Valley Housing Association has a £1.75 million project which will mean the revamp of Pontypool's derelict Clarence Hotel.

The Association is hoping to start work early next year on the scheme, the lynchpin of the Clarence Corner redevelopment, which will see 14 new flats, 4,500 square feet of offices and 4,000 square feet of conference space.

The cost of renovating the derelict hotel will be met by a combination of Social Housing Grant and Private Finance and other grant funds.

A planning application is due to go before Torfaen council at the end of August. The contracts will then go out to tender and work is expected to start no later than January and be completed in autumn 2004.

Housing association chief executive Mark Gardner said: "These pictures should give people a real feeling for what the finished product will look like - it certainly does for me."

He was confident the housing association would have no trouble renting out the accommodation when it was ready.

"We hope this will be the catalyst for the development of the whole Clarence Corner. Everyone wants to see the area succeed."

The plan is already costing more that originally expected because of the use of more expensive materials to meet with conservation guidelines. Some original stone will be used in a wall around the hotel.

Torfaen council also recently adopted a scheme for the future of the wider Clarence Corner area.

It lists possible uses for the area stretching from the leisure centre to Robert Price builders' yard. Those uses include a new hotel, restaurant, houses, pubs and offices.