Council chiefs in Weymouth hope to win the battle for North Quay – as they look ahead to redeveloping the flagship site.

Weymouth and Portland Borough Council is dealing with the fallout after the sale of its former council offices to developer Acorn South collapsed last summer.

The council has been prompted to think again on what to do with the key regeneration site, but this time aims to take control over what happens there.

But there are legal hurdles to be cleared in the background.

A High Court battle with Acorn is looming – unless an agreement can be reached before then – and in a separate dispute a planning inspector will rule shortly whether Acorn needed planning permission for its change of use approach to converting the offices into homes.

Both of these could prove costly to the council if it does not win.

The change of use ruling could potentially have implications for other authorities if the inspector says planning permission would not be needed when seeking change of use of a council building from office to residential.

The inspector will make a decision on the planning appeal based on written submissions. He has already made a site visit to Weymouth as part of his enquiries.

As well as this, Acorn, through its subsidiary North Quay Weymouth Ltd (NQWL), is going to be suing the council in the High Court over ‘misrepresentation’ because it understood it would get planning permission for converting the North Quay building when it agreed the £4.5 million deal.

It will be claiming for its return deposit of £250,000 – however it is understood the legal bill could run to £2 million.

The council has previously said it would be vigorously defending itself, and will be counter claiming to recover costs associated with Acorn’s failure to complete on North Quay. Mediation talks have been held between the two parties, but it is not known if a resolution has been reached.

The matter was discussed at

a behind closed doors council management committee last week.

Leader of Weymouth and Portland Borough Council Cllr Jeff Cant said: “The council remains in legal discussions with NQWL and it remains inappropriate to comment on the details.

“Our priority remains to secure development for the site to support the town and local economy.

“Be assured that we are working hard to get the best result for our town.”

Cllr Cant is remaining upbeat and is confident the council has a strong case in its legal disputes.

He said the council remains committed to developing the site. Initial drawings from an architect on a new mixed-use redevelopment scheme for North Quay have already been seen by council chiefs – with new buildings in place of the old offices.

It is expected these plans will be unveiled soon following some adjustments.

Cllr Cant said the dispute with Acorn has not held up the process of looking at future options for North Quay.

The council has teamed up with Public Sector PLC to forward its plans, a move which can unlock various funding streams and ensure the council remains involved in the development process. A developer would be found to do the construction work but the council would oversee the project.

Cllr Cant said: “We’re looking to get a very attractive community development on the site which will add a lot to the harbourside.

“And whatever happens, the North Quay building will be gone.”