THE Dolphin Quays development on Poole's waterfront might be worth millions but the council will receive an annual rent of only £68,000.

That is the value of the leases for the council owned land, which the Borough of Poole is seeking to sign - for the second time.

The site was originally leased to Orb Developments Ltd in March 2000 for 130 years, but the company went into receivership in June 2003.

Now Skelton Poole Ltd, in partnership with Richard Carr's Ravine Developments, has bought the retail part of the development for £10.6 million from the receiver.

"It's not a commercial rent for the occupation of the building, it's the ground rent payable to the landlord," said Tim Martin, the council's head of legal and democratic services.

"In the retail units they will be paying commercial occupation rent to the people who are our tenants," he said.

He added: "This had been recommended by the council's valuation service as being an appropriate sum.

"From my background knowledge I would say that is something you would expect." Tomorrow's meeting of the cabinet will be asked to approve assigning the head lease and supplemental lease to Skelton.

Last year the council reached a financial settlement and received compensation of £100,000 because the development's balconies jutted out up to two metres further than they should.

This came after underground foundations also extended beneath councilowned quayside land.

An amended overall area of 257 square metres has been calculated and the District Valuer advised that the lease sum reflects the overall area of land, says the report to go before councillors.

"At the moment it's on hold with the liquidators," said Mr Martin.

He added: "We would like to see it being sold and the remaining developments being completed."