The popular brand will take a 1,950m² unit in the Treadmills scheme – and bring up to 40 new jobs for the local community.
The multi-million pound investment will be the key element of the first phase of the Treadmills scheme, which will also feature another 550m² retail unit and parking for around 130 vehicles.
A detailed planning application for the first phase is expected to be submitted this summer and, subject to planning approval, construction is likely to begin early next year with the Lidl store due to open by late 2019.
Hambleton District Council and Hull-based regeneration company Wykeland Group have formed the Central Northallerton Development Company to drive forward the North Yorkshire town’s most significant regeneration scheme for decades.
As well as the major stores, the £16M scheme will include independent retail units, managed workspaces, restaurants, a cinema, an area for public events and a heritage centre within the 3.5-acre former prison site.
The scheme will preserve and enhance a major part of Northallerton’s history and heritage; regenerate a large brownfield site; deliver a major boost to the local economy; and bring significant new community assets and facilities to the town.
Five listed former prison buildings will be refurbished and incorporated into the Treadmills scheme – whose name reflects that the jail was once home to the world’s largest treadmill and several other treadwheels – which were used by inmates sentenced to hard labour.
Wykeland Head of Development Jonathan Stubbs, speaking on behalf of the Central Northallerton Development Company, said: “We’re delighted to have secured one of Europe’s leading food retailers for Treadmills. Lidl is a highly popular brand and has identified this scheme as ideal for their successful format.
Lidl UK’s Regional Head of Property, David Murphy, commented: “We are delighted to be bringing a new store in Northallerton, which marks another milestone in our ambitious store expansion programme.”
Northallerton Prison housed prisoners for more than 230 years before closing in 2013. Hambleton District Council bought the site from the Ministry of Justice in 2014 to secure a key strategic site close to the town centre for development.