ONE of West Somerset's prime development sites is likely to be mothballed until the housing market recovers and the current credit crunch has eased.

The Free Press exclusively revealed earlier this year that a £12 million scheme to transform Watchet's derelict East Quay was on the verge of collapse.

And this week Adrian Dyer, executive director of West Somerset Council - which owns the marina-side site - effectively confirmed the fears.

Mr Dyer told Watchet Town Council on Monday that following several months of negotiations with Urban Splash - the Manchester-based developer chosen almost five years ago - it had become clear that the scheme for which planning permission had been given was no longer viable.

Approval for the controversial mix of apartments, retail outlets and community space was granted 18 months ago.

But although the 'longstop date', when the development was expected to have been completed, was the end of March this year, work has yet to begin.

Mr Dyer said legal advice was that there were no "implications" from the passing of the longstop date and that the agreement with Urban Splash remained until the company or the district council terminated it.

Talks between the two parties and the marina operator had taken place to see if there was any chance of a revised scheme being remotely viable.

And Mr Dyer said among the options that would be put to the authority's cabinet, probably in July, were whether to pursue an alternative development and also whether to retain Urban Splash as the preferred developer.

But although Urban Splash were "100 per cent" committed to wanting to remain on board, the company could be hit by procurement law.

Mr Dyer said he was awaiting legal advice on whether an alternative scheme could be considered without the council having to go back out to tender.

"The end product won't bear much relation to what Urban Splash tendered for, so there could be an issue with procurement law," he told councillors.

And he admitted that the council could be forced back to square one, having to embark on a new tendering process with a raft of potential developers.

But Mr Dyer said another option that would be put before the cabinet in the short term was simply to mothball the site until the economic climate was more advantageous.

"What that would involve, we don't know at this stage," he said.

However, the former cargo shed on the site, described by Mr Dyer as being in a poor state of repair, is likely to be demolished, which will have a cost implication for the council as it is known to contain asbestos.

Councillors urged Mr Dyer to "regulate" the use of the site while any development was on hold.

And Cllr David Banks said the area to be developed should be marked out and possibly fenced off to make its boundaries clear.

"At the moment it is just like a scrap site," he said.

"There are boats and caravans parked there, water and electricity is being used at taxpayers' expense - there are no rules, no boundaries.

"The whole thing is blurred around the edges. It has got a real value - it is a prime site and it is the key to unlocking Watchet's future prosperity.

"It must be packaged and not just remain as a scrapyard."

The gloomy news on the future of the East Quay was coupled with less than positive news on hopes of replacing Watchet's railway footbridge.

The rusting structure, which is owned by the district council, has been closed to the public since last October following safety fears.

And although the town council was assured earlier this year that a deal to deliver a "like for like" replacement was on the verge of being struck, Mr Dyer revealed that the bulk of the money to pay for it had yet to be found.

He said the West Somerset Railway had pledged a small amount of cash, coupled with a large contribution "in kind", and the town council would also be asked for some money.

But while local Somerset county councillor Anthony Trollope-Bellew had pledged some of his £10,000 community budget, the county council itself had refused to contribute.

Mr Dyer said although a contractor had been identified and was currently undertaking some design work at its own expense, a "funding stream" for the project had not been identified.

He said it was not possible to reveal the exact cost at this stage because it was still commercially sensitive.

"But we are talking about a significant amount of money. The reality is that this is against a backdrop of the district council looking at a 20 per cent cut in Government funding over the next three years - and that is a conservative estimate."

Mr Dyer said the authority was trying all avenues to find the money but until it closed its accounts on the last financial year and had a clear indication of the scale of cuts it would be facing, it was impossible to be definite.

Cllr Dave Westcott said he was sure that Mr Dyer and the district council were fully aware of the importance of the footbridge to Watchet.

"It is vital that it is replaced," he said.

And newly-elected chairman Cllr Sally De-Renzy Martin urged the district authority to press its case with central Government for West Somerset to be treated as a special case.

A recent report by former chief executive of Westminster City Council Bill Roots concluded that the council was "almost unique" because of its small population, rural character and low Council Tax base.

Mr Roots - who was drafted in to scrutinise the authority's finances - raised questions about its long-term viability, staffing levels and precarious financial position but also urged that it should be treated differently and made an exception to the usual Government inspection rules.

Mr Dyer said Mr Roots was held in high esteem.

"With him saying that we are virtually unique provides us with ammunition - we will be banging on the Government's door."