Developers have cleared Macclesfield Hospital’s debts by buying unwanted land and turned it into a £30m mixed development – bringing up to 200 jobs to the town.

Keyworker Homes are behind a project to build a care home, ‘Kids Allowed’ creche and affordable housing on the site, known previously as the ‘Blue Zone’.

The scheme, which also includes apartments, offices, shops and a gym, will create 250 jobs during construction. Demolition work has already begun.

Up to 300 people will be employed at the site, to be completed by summer 2011, including up to 200 new posts.

The Blue Zone has been unused since being completely vacated at the start of last year.

Controversial original plans for the site were rejected by councillors after strong opposition from residents but an amended version was granted planning permission last June.

Kathy Cowell, chairman of East Cheshire NHS Trust, said the sale had gone through in April. In these very difficult economic times we are delighted to have sold the land and the hospital is in the best place it has been for probably five years," she said.

"It will safeguard the future of the hospital. The whole site has been sold off in four plots to get the maximum value for the land. The money is in the bank and we have paid off our historic debt." Bill Livesley, of Macclesfield Chamber of Trade, said: "Part of the site has been sold to Cannon Capital Partnership for the construction of a 75-bed care home, while 15 houses and 16 apartments for sale are to be built nearby in a later phase.

"A listed clock tower building is being retained and has been sold to Dane Housing to turn into 36 affordable apartments for rent."

East Cheshire NHS Trust is to lease the office space back from Keyworker Homes alongside Central and Eastern Cheshire PCT.