The scandal-dogged trust running Springfield mental hospital has revealed £90million plans to turn its fortunes around by modernising its 19th century buildings.

Knocking down creaking structures and replacing them with up-to-date treatment facilities, the trust wants to create a new London neighbourhood dubbed "Springfield Village".

The homely name describes plans for a "vibrant urban community" with mental health units sharing the 33-hectare site with new community, residential and commercial ventures where asylum buildings have stood since 1841, as well as plenty of trees and gardens.

However, planning permission has yet to be sought or granted and the final completion date is likely to be 2012.

The trust said the site as it stands "remains institutionalised and segregated from the community characteristics that contribute to the isolation, stigma and discrimination that surround mental illness."

Under the plan, listed heritage buildings labelled by the trust as "totally inadequate" for treating mental illness would be put to other uses generating income for the trust, which only just broke even last year.

New streets and paths would blur the boundaries between the hospital and surrounding Tooting community and new housing would include private flats, staff housing and older people's accommodation.

Staff said they also wanted a library, gallery, theatre and sports facilities on site, while a new central square could include restaurants, convenience stores and dentist practices.

As well as improving conditions for care, removing dangerously poor sightlines and "tiny, cell-like bedrooms", the trust hopes the transformation would lift poor staff morale.

Showing the News around one new building due to open in October other works will follow in phases rehabilitation team manager Gary Truman predicted staff recruitment and retention would improve as health care professionals clamour to work in modern surroundings.

"We need units like this to attract staff," he said.

"There will be new staff, a new culture fantastic."

The trust said the "Springfield master plan" had been put together through one-on-one interviews with staff and patients, group discussions, workshops and the involvement of local residents, community groups, businesses, Wandsworth Council, the GLA and English Heritage.

The trust will next develop a business case by early 2006, before seeking approval from its board, the Strategic Health Authority and finally council planners.

gmcgregor@london.newsquest.co.uk