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Fort William Waterfront Ltd say their decision is linked to the current global economic situation which dictates that this scheme is not capable of being funded in today’s market.
The Highland Council has been working with Fort William Waterfront Ltd to progress the project since October 2007 when the company was chosen as the preferred bidder on the basis of a 175-year lease with several major suspensive conditions. Missives were signed in May 2009.
The proposed development, valued at £80 million, was proposed to feature a new supermarket, offices, new library, new residential developments and car parking.
Councillor Michael Foxley, Leader of the Council’s Administration, said he understood that the banks were not lending for major developments in the present financial climate.
He said the Council would work with partner agencies and the community to investigate how the wider Fort William area could continue to be enhanced and improved to maximise the potential of the waterfront, including the creation of a marina and increased usage of the high street.
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Councillor Foxley 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."
Councillor Ian Ross, Chairman of the Council's Planning Environmental and Development Committee, said: "While this is very disappointing, it is important to say that the Highlands remain an attractive place for investment and there continues to be significant development interest right across the Highlands.
"We will devote time and effort into finding new business opportunities in Fort William."
A report on the waterfront development will be presented to the full council next month.
A spokesman for Fort William Waterfront Development Ltd said: "It is with reluctance that we withdraw from the development. The consortium has put in a great deal of time, work and expense to progressing to the project which we felt was imaginative and beneficial to the town and wider area.
"However, our timing was not ideal because the global economic situation has changed and it is clear from our enquiries that the scheme is not capable of being funded in today’s market.
"We thank The Highland Council for the opportunity to asses this development and we wish them well on securing a replacement developer."
(GK)
