Plans for a £290m residential scheme in Hove, East Sussex, have fallen through due to the downturn.
Developer Karis and ING have dropped plans for the Frank Gehry-designed scheme, known as the King Alfred scheme, as a result of funding problems.
Brighton and Hove Council’s cabinet is due to meet on Thursday to discuss how to move forward with regenerating the seafront area.
The scheme involved 751 flats, a new leisure centre, and retail, restaurants and bars. It has had a chequered history, with the ‘wobbly tower’design causing controversy before it was eventually granted planning in April 2007. Plans were first unveiled in 2003.
In June, ING pulled out of funding the development. Under the agreement with the council, Karis had to fulfil its obligations to develop the site by 8 November. However, without a funding partner, this was not possible and the council now has no proposals to develop the site.
The council wants to improve sports facilities on the site as well as see wider redevelopment. It is now considering its options.