The supermarket will take a 21,000 sq ft unit as part of the Treadmills scheme, which is being created on the site of a former prison in Northallerton. Up to 40 new jobs will be created for the local community.
A detailed planning application for the first phase of the project will be submitted this summer. Overall, the development involves creating 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. Five listed prison buildings will also be refurbished and incorporated into the Treadmills scheme.
In addition to Lidl's unit, the first phase of the scheme will feature another 6,000 sq ft retail unit and parking for around 130 vehicles.
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Subject to planning approval, construction is likely to begin early next year with the Lidl store due to open by late 2019.
The development is being taken forward by Hambleton District Council and regeneration company Wykeland Group, who have formed the Central Northallerton Development Company to drive forward the regeneration.
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's commitment is a major step forward for the project and we believe local residents will welcome the quality, value and additional choice it will offer to shoppers.
"This announcement reflects the very strong interest we are seeing as we develop the commercial opportunities available and work with our partners at Hambleton District Council to realise the ambitious vision for this exciting redevelopment."
Lidl UK's Regional Head of Property, David Murphy, said: " We are delighted to be bringing a new store in Northallerton, which marks another milestone in our ambitious store expansion programme.
"We've seen incredible demand for Lidl stores across the country and look forward to offering our quality products and incredible value to shoppers in and around Northallerton."
(LM/MH)
