Fort William Waterfront has withdrawn from an £80 million project to revamp a waterfront in the west of Scotland port.
Plans for the seven hectare site in Fort William included housing, a new supermarket, offices and a new library.
But Fort William Waterfront now says the current global economic conditions mean the scheme cannot be funded. A spokesman said it had now withdrawn from the development “with reluctance”.
Highland councillor Michael Foxley, leader of the council’s administration, said: “Looking to the future, our ownership of the seabed means that when economic conditions change and if the right scheme comes along, we remain in a position to secure the best result for Fort William town itself.
“In addition, we have the wider waterfront development proposals, such as the marina and improvements to the environment near the old fort. We will now need to see how we can implement some of these in the short to medium term.”
Fort William Waterfront had previously been selected as the preferred bidder for the project on the basis of a 175-year lease, with missives signed in May 2009.
A report on the waterfront development is set to be presented to Highland Council in May.