A £10 million project to turn Keswick's old pencil factory into a conference centre with a 400-seater auditorium and Lake District views could be complete by 2021.

Keswick Ministries plans to turn the Southey Works building into a new home for its annual Christian convention and a conference centre.

The charity has pumped £3 million into the project and two years ago began raising another £7 million. It hopes to run the final convention at its Skiddaw Street base next year, with the whole event moving to the factory site and neighbouring Rawnsley site in 2019.

The Skiddaw Street site is set to be sold to help fund the phased scheme. The factory building would first be made safe and watertight. The ground floor would then be developed, with a reception area, toilets and showers, and some event space.

Plans include raising the floor level and putting in ground-floor services from above to make it flood resilient.

The first floor would feature bedrooms for convention volunteers and visiting church groups, with a 400-seater auditorium and separate seminar space on the top floor.

The charity initially thought the former factory was beyond repair and planned a new build with 2,500sqm of floor space. Having learned it could be saved, architects drew up conversion plans to create a 3,500sqm centre, keeping the art deco feel. The plan follows a campaign to save the building.

The rough project costs for conversion are 10 per cent less than building new.

James Devenish, business director, said: "It feels very special that a building with such historic significance can be saved, restored and put to very good use. We can make an iconic building a bit like a phoenix rising from the ashes. We're planning something outstanding but also functional, for the area as a whole."

The charity aims to complete the project by 2020 or 2021.

Mr Devenish said: "The aim is not to compete for accommodation, just to provide better accommodation than we have got at Skiddaw Street. If we serve a church group they wouldn't stay in town. If we run a conference want to partner with the town so people stay there and Keswick benefits.

"Being able to phase the project is a lot more secure for putting the convention on each year. I'm thrilled to be in this position. It's God's goodness that's led us to here."

The charity expects to submit a planning application in the coming months.