COUNCILLORS are growing increasingly concerned about the development of the disused Kingsway site in the city, The Citizen can exclusively reveal.

The authority has until July to commit itself to plans proposed by London-based developers, Chelverton Properties, but following recent proposals some councillors fear that they might not end up with the scheme originally submitted by the company.

The original bid by Chelverton, believed to be worth in the region of £4 million, included a complete redevelopment of the site and featured a hotel, some retail development and boulevard.

But as negotiations between the company and the council have progressed it is reported various amendments have been suggested by the company which would substantially alter the whole project. Those amendments include a huge increase in the amount of retail development, no new traffic system and no hotel. These were all seen by some councillors as key reasons for opting for the Chelverton bid.

It is believed that officers have been instructed to reject any such proposals but the July deadline places severe pressures on all parties to thrash out a solution. If nothing is agreed the council's budgetary plans could end up in tatters as some projections have been made based on revenue generated by the sale of the site.

Cllr Tricia Heath of the MBIs commented: "It is true we are worried about the delays in progress and we have made our views known on the proposed changes. We are awaiting a response."

Cllr Jon Barry added: "The bid submitted originally by Chelverton bears little resemblance to what they are talking about now. I'm deeply concerned that a massive retail development and 600-space car park could sound the death knell for Lancaster's and Morecambe's high streets."

Chelverton have laid a £400,000 deposit and will lose a quarter of that if no scheme is agreed.

A spokesman for the company claimed there had been no departure from their plans but agreed that the project had not yet been finalised.

"There are ongoing discussions with the council to provide the best possible scheme which we hope to make exciting and viable.

"No planning applications have been submitted so far," he added.