Proposals for the disused 3.5-acre site include retail units, managed workspaces, a heritage centre, apartments, restaurants, a cinema and an area for public events.
Northallerton Prison dates back to 1780 and housed prisoners for more than 230 years before closing in 2013.
Hambleton District Council bought the site from the Ministry of Justice in 2014 for redevelopment. It selected Wykeland as its development partner following a competitive tendering exercise.
In preparation for the mixed-use development, a number of buildings have been demolished and extensive archaeological works have been carried out, during which foundations for the world’s largest treadmill were unearthed.
Five listed buildings have been retained, including the former women’s prison wing and the Governor’s House. These buildings will be refurbished and incorporated into the phased development of the site.
Wykeland managing director Dominic Gibbons said: “With the formal structures for the development company in place we can now move forward together to deliver this very exciting scheme.
“We’re currently working up detailed plans for a planning application to be submitted in the first quarter of 2018. Although the development is in its early stages, we have had significant interest from commercial operators who recognise the potential of this project.”
Hambleton District Council chief executive Justin Ives added: “This site gives us a once-in-a-lifetime opportunity to not only support and strengthen the retail and leisure economy of Northallerton, but to benefit the whole of the Hambleton district. Wykeland shares our goals to create a high-quality scheme which will benefit the whole community, so we are very much looking forward to working with them.”