WEYMOUTH and Portland Borough Council has dramatically hit back at developers over the North Quay offices saga – and stressed it will be "vigorously defending" itself in a legal fight.

It has spelt out its position with regard to the planning aspects of the row, and has denied any assurances were given over whether the building could be converted without specific planning consent.

In what is turning into a bitter row between the parties, the authority said it had now "lost confidence" in the developer's commitment to the sale.

It comes after the Echo revealed the council was being sued in a multi-million pound battle over the collapse of its agreement to sell its former offices.

A claim has been issued in the High Court by North Quay Weymouth Ltd (NQWL), a subsidiary of Acorn Property Group, which wanted to convert the building into apartments.

The basis of the claim by NQWL is misrepresentation because it understood it would get planning permission for conversion when it agreed the £4.5 million deal.

Acorn specialises in reusing existing buildings on brownfield sites.

After Acorn set out its position last week, the council has now hit back setting out its own position and responding to what it said were "inaccuracies" in Acorn's statement.

A statement from the council said: "The council is extremely disappointed that it has had to end its contract with the prospective purchaser. This follows a number of attempts to complete the sale in accordance with the contract."

The council said it offered North Quay for sale on an unconditional basis – the sale was not subject to any particular planning consent being secured. Acorn submitted the highest unconditional bid, and was selected as the purchaser. Contracts were exchanged a year ago, binding both parties into a sale which had no planning conditions.

The council said: "Acorn has sought to use permitted development rights to facilitate redevelopment of the existing building. The council, as the planning authority, having taken advice, has concluded that change of use of North Quay requires a planning application. Acorn have appealed to the Planning Inspectorate.

"The council would expect any developer to carry out due diligence and establish key details such as planning status if that is an essential element of its strategy for the site. This would be expected prior to exchanging contracts.

"Council records show that Acorn was advised of the planning status at the bidding stage. It is clear however that Acorn did not engage in further discussions with the council on planning matters before exchange of contracts.

"At no time did any officer from the council offer any verbal or written assurances to Acorn that the existing building could be converted to residential use without specific planning consent. Any such assurances simply would not feature in contract negotiations with a developer."

The agreed completion date was July 31 this year so the council said Acorn had 10 months to engage with the community and councillors and communicate its vision for the site, while also applying for planning permission – but it failed to do this.

Only last month did Acorn commence the process of seeking change of use consent.

Having failed to complete the purchase on July 31, the council gave Acorn another deadline of September 15 for completion but this deadline was also missed.

The council said: "As a result of Acorn’s failure to complete despite additional time – and its lack of progress with planning – the council has lost all confidence in Acorn’s commitment to the sale, and their ability to complete."

It added: "It is regrettable that Acorn has commenced legal proceedings for misrepresentation of the sale. The council is extremely disappointed with Acorn’s handling of the matter and will be vigorously defending its claim.

"The council is confident of its position. In addition, the council will be counter claiming to recover earlier and ongoing costs associated with Acorn’s failure to complete on the property."

The council stressed its goal was to secure development for the site to support the town and local economy.

It added: "Acorn’s submission was the highest unconditional offer in line with our agreed procurement framework at that time. Our members will now review the options for moving forward and we will communicate this in due course."