PLANS have been drawn up for the first building in what is envisioned as a 20-year, £4million regeneration project on Plymouth's famous Union Street.

The Millfields Trust is working on plans to build four roadside blocks, labelled A to D, next to its HQ site.

It wants to construct the 17,000sq ft block C first, on some of the grass and parking space at the site.

The four-storey, environmentally-friendly block would become a base for generating new businesses.

An application for funds has been made to the European Regional Development Fund (ERDF).

Millfields Trust managing director Roger Pipe said the fund had encouraged the trust to develop its plans.

He said: "We have looked at bringing forward a planning application for block C.

"It would be the first stage of a major redevelopment that would go across the whole area.

"There are hurdles to jump but if successful it would provide four floors of business accommodation particularly focussed on small businesses and start-ups."

Mr Pipe said the idea is not just to provide work space for 30-plus businesses to rent, but have support and advice services for enterprises included too.

This would provide a "first rung on the ladder" for new enterprises.

An outline planning application has been submitted to Plymouth City Council and a consultation carried out.

Mr Pipe said neighbours have been supportive, including business tenants in the HQ building, the former Jaeger factory, now used as work space.

"If successful we are looking to build in the autumn this year, and looking at a 12- to 18-month build," said Mr Pipe.

Millfields Trust is a not-for-profit company set up to enable Stonehouse people to contribute to regeneration of the old St Peter ward.

The trust provides a platform to enable small and medium-sized businesses to grow and develop, offering flexible tenancies and secure buildings.

It has premises at the former naval college site The Millfields, including Creykes Court and Mary Seacole Road.

It acquired the freehold of the 30,000sq ft HQ building, including a car park and surrounding land, from the city council in 2008.

Millfields Trust chairman Father Sam Philpott, said: "It's a major milestone for the community and a major development on Union Street.

"It will be a major improvement on Union Street, which will give the community a lift and raise self-esteem.

"It will also be evidence the community can turn itself around. This is a community that has had challenges for a number of years, that has been seen to have things done to it, and will now be doing things for itself."

He said jobs could be created building the block, and when completed it could encourage others to re-develop other parts of Union Street.

Father Sam, recently awarded the MBE, stressed the trust's directors are all volunteers and said: "There are no fat cats. There are no shareholders, the surplus goes back to improve the businesses or the community."