Work has started to bring a 19th Century grade A listed building in Arbroath back into use.
The Baltic Mill site on Dens Road will be turned into affordable homes, commercial units and community space over the next three years.
The huge building was built in 1861 as a linen weaving factory, owned by successful manufacturer Andrew Lowson.
Having been empty for decades, a £5 million project is now under way led by local company Dens Road Ltd.
The project has received £1.08m funding from Angus Council’s survive and thrive programme and £800,000 from the Scottish Government’s Regeneration Capital Grant Fund.
The ambitious plans were praised by Housing Minister Margaret Burgess when she made a site visit with representatives from Angus Council.
She said: “The development will breathe new life into the A-listed building by providing affordable space for local businesses and social enterprises, creating job opportunities that will benefit the local community.”
The first phase of the project, which will create two retail premises and business start-up units, is expected to be completed by the end of the year.
Early next year work will then start on creating 36 affordable housing units for mid-market rent. This is expected to take two to three years.
The site’s old chimney, which is visible from the main east coast railway line, will be retained as a landmark.
Angus Council housing spokesman Donald Morrison said: “This site is in a key town centre location and these works will greatly contribute to the ongoing regeneration of Arbroath.
“There is a real need for more affordable housing in Arbroath and this new development will help alleviate this demand.
“The commercial and business aspects of the development will be really valuable in providing and sustaining job and training opportunities for local people.”
Baltic Mill is thought to have been named after the Baltic Sea, where ports provided flax for the weaving process.
Over the years it has been used as a distillery and home for a sail maker.
During the Second World War it was a military training base.
A spokesman for Dens Road Ltd said: “We are very pleased to be working on such an important project with Angus Council and the Scottish Government.
“We are also delighted that we can help to re-use and retain these important iconic buildings which have been empty for many years but which have had a major contribution to the cultural history of Arbroath.”