WEST Somerset District Council has scrapped the agreement for Watchet Marina operators Dean and Dyball to develop the town's East Wharf.

Members of the council's cabinet agreed the move at their meeting on Monday after hearing the company was not able to meet in full the terms of the contract.

The councillors decided to allow Dean and Dyball up to three months to negotiate exclusively for a new agreement once the Urban Design Framework document for Watchet had been issued.

If negotiations during those three months were unsuccessful, talks about future development of the East Wharf would be open for any interested party to take part.

The cabinet also agreed in the meantime to grant a short-term tenancy of the Watchet harbourmaster's office to Dean and Dyball pending completion of the Urban Design Framework and any new agreement which might be reached on the East Wharf.

Dean and Dyball, constructors of the £5.1 million marina, had planned to build 18 harbourside homes on the East Wharf along with commercial facilities for boat owners.

Council chief executive Tim Howes said the original agreement with Dean and Dyball required the company to obtain planning permission for the East Wharf and marina onshore facility by September 30, 2000.

The date was extended by mutual agreement to March 31, 2002, and Dean and Dyball had submitted and then withdrawn an application for a further extension.

Mr Howes said the expiration of the date meant that, under the agreement, either party could serve notice of termination on the other.

He said Dean and Dyball had not submitted detailed design proposals on the commercial development element of the East Wharf scheme, nor had it given a timetable for completion of the commercial aspect of the project.

Mr Howes said: "This is not the end of our relationship with Dean and Dyball but merely an opportunity to renegotiate that relationship.

"Dean and Dyball will, of course, continue to operate the marina, which they successfully completed on time and within budget."

Dean and Dyball spokesman Kate Cusack said the firm was naturally disappointed that the development of the East Wharf had not progressed further at this stage.

She said: "However, we are far from believing this to be the end of our involvement in the scheme. It has always been our intention that the development would follow on after the opening of the marina so that best use could be made of the opportunities arising naturally from the added value created by the marina.

"We are in agreement with West Somerset District Council that various aspects of the original brief no longer reflect the best way forward for the future development of the area. It is, therefore, wholly appropriate that the agreement be reviewed.

"The Urban Design Framework study will address these and other issues and, when complete, will be the ideal time for us to reappraise our development proposals for both the residential and commercial units."

She said the marina was now well established and, as envisaged, was already bringing increasing numbers of visitors to Watchet by both land and sea.

"This is good news that is welcomed by locally based businesses and individuals and clearly demonstrates that the regeneration of Watchet is underway.

"We have every confidence that in due course the appropriate development of the East Wharf will assist in this process."