THE future of Watchet's East Quay is back in the melting pot after West Somerset Council agreed to end its longstanding deal with the developers appointed to transform the derelict marina-side site.

Urban Splash's scaled-down plan to create a complex of around 30 homes with some retail and community space is officially dead in the water after councillors agreed to take the first steps to terminate a legal agreement signed in 2005.

At a meeting on Wednesday, they voted to reject the company's offer of £180,722 to buy the site - believed to be considerably lower than the district valuer's estimation of its worth.

But the severing of the links between the council and the developers could open the door for a community-led initiative to help steer the development of the land.

The Onion Collective, a West Somerset-based social enterprise group, first unveiled its vision of turning the site into a mix of work units and creative space industries almost a year ago.

But the group's hopes were sidelined when the council decided to give Urban Splash another stay of execution.

However, this week Jess Prendergrast - who with her sister Naomi Griffith and co-directors Rachel Kelly and Georgie Grant launched the Onion Collective - told councillors the community scheme was still on the table.

Ms Prendergrast said £80,000 of Government funding, which had been granted to them to draw a development scheme together last year was still available.

"We could start to draw it down in the next few weeks," she said.

"We want to see a viable community development and we want to get an idea of what Watchet needs."

The money, which would have to be used within six months, could help the group consult and tie together ideas that would need to be virtually at planning permission stage by the autumn.

Ms Prendergrast said a lot of things had changed in the last year.

Any scheme would look at complementing the existing maritime offer, focusing on creative, cultural, community, youth and tourism.

"We have the resources in place to carry out a consultation properly and really move forward to get the outcome for Watchet that it deserves after ten years."

Previously, council leader Cllr Tim Taylor said councillors were not being asked to make a decision on the future of the development land, with options to be set out in a report that would be considered at a meeting in March.

He said there were all sorts of variables and that a scheme more "applicable" to the community could be possible, with funding from the proposed new nuclear power station at Hinkley Point and a range of other sources that might be available.

"We have a chance to go back and listen to local people to see exactly what they want to see on that part of the East Quay.

"The harbour and the Esplanade are the jewel in Watchet but at the moment the East Quay is not.

"Whatever goes there will have an impact on the attractiveness of Watchet."

In addition to agreeing to end the agreement with Urban Splash - which will involve the council returning a £50,000 deposit, plus £22,300 accrued in interest - councillors were also asked to consider the outcome of protracted negotiations with Watchet Marine Ltd, which operates the marina.

They had been recommended to sign a deal with the company clarifying its rights on parking and the use of part of the East Quay.

The debate on all the issues, including the end of the Urban Splash agreement, took place behind closed doors on the grounds of commercially sensitive information.

But when they came back into public session, it emerged that councillors had rejected a recommendation to sell the boatyard area on the East Quay to the marina operator for £20,000, plus an annual peppercorn rent of £1.

Instead, they voted to give delegated powers to Cllr Taylor and interim executive director Adrian Dyer to negotiate an index-linked rent for the land, broadly in line with the district valuer's estimation of £1,700 a year.