A former psychiatric hospital in Denbighshire, which cost tax payers �300,000 after planning problems, is to be sold off at public auction.

North Wales Health Authority put the Denbigh hospital up for sale when it closed in 1995, however, offers in the region of �1m were initially refused.

I would like to see it redeveloped as something for the young people in Denbigh because there's nothing here for the young Kelly Pendlebury resident

After years of delay it was eventually sold for �155,000 in 1999 to a Lancashire businessman who planned to build a housing development on the 120-acre site.

But Gerald Hitman ran into opposition from local people and the 1840's listed building has been left dormant.

Denbighshire council have issued an enforcement notice on Mr Hitman, outlining his responsibility to increase security on the site and replace lost features from the building.

The hospital sign is still visible

The notice followed a spate of vandalism reported at the former hospital.

A report published in July discovered the real cost of the sale of the former psychiatric hospital to the tax payer.

Auditor General for Wales, Sir John Bourn, used the sale of the Denbigh hospital was an example of how the disposal of property by the NHS in Wales had resulted in costs exceeding the total proceeds.

Local people said they would be happy to see the building put to good use after years remaining empty.

Kelly Pendlebury said it should be used for youngsters.

Locals reaction

"It's better to sell it than just letting it stand there and do nothing, it's a good idea.

"I would like to see it redeveloped as something for the young people in Denbigh because there's nothing here for the young," she said.

Resident Clifford Brent, from Henllan, said he was slightly concerned about sale of the building at auction.

"People would rather know for what purpose it's being sold, for so long it's been a wonderful hospital," he said.

"We hope that it will be put to good use and serve people, not necessary make money for someone else."

A spokesman for Denbighshire council said the authority was aware the property was for sale but they were not intending to buy it.

"We simply do not have the very significant resources that would be required to purchase, restore and maintain it," he said.

Mr Hitman was unavailable to comment on the forthcoming sale.