The Becketwell site, which includes the old Debenhams building in Victoria Street and Duckworth Square, has been a thorn in the side of Derby City Council and regeneration company Derby Cityscape for years. Previous regeneration attempts have failed – and now, the latest effort to come up with ideas for the site's renaissance have been shelved.
Derby Cityscape chief executive John Cadwallader blamed a shortage of public sector money.
"The position at the moment is that we can't make any scheme work in the current climate," he said.
"There is limited Government funding available. East Midlands Development Agency has had its budgets significantly reduced and the Homes and Communities Agency has been told to direct funds towards schemes that already have planning permission and are ready for quick delivery."
Derby Cityscape had ordered a company to come up with the best options for the site.
Five proposals were outlined in September last year, which included shops, offices, housing and leisure facilities.
The consultants came back with two preferred options – one a major shopping scheme, the other a mix of shops, offices, student accommodation and leisure facilities.
If money had been available Cityscape would have developed one option further and then looked for interested developers.
Instead the two ideas will now be put on ice until the market picks up, although Mr Cadwallader said Cityscape would continue to keep a look out for funding and interested developers. Similarly, council leader Hilary Jones said Becketwell was still top of her priorities.
"We are always looking for funding and ways to develop this site," she said.
And Mrs Jones said the council would consider the site as a potential location for its own developments.
It is looking for a site for a city centre Olympic-sized swimming pool – one of two major sporting hubs – as part of its £50m leisure strategy.
Mrs Jones said: "The next step for our leisure strategy is for officers to start analysing bits of land for both hubs.
"Part of the plan has always been to use the leisure strategy to kick-start regeneration in the city.
"I guess Becketwell is going to be on the list to see whether it is suitable."
The land at Becketwell is owned by different companies and organisations including Westfield, which owns the former Debenhams building, and Metropolitan Housing Trust. The old Debenhams store is currently occupied by a budget furniture store.
Westfield development director Neil Huntington said: "We have been concentrating on our own interest in Debenhams.
"That store is still on the market. We have had a couple of parties interested but they haven't gone as far as making offers."
A Metropolitan Housing Trust spokesman said: "As the owners of Duckworth Square we are very disappointed that Cityscape has not been able to take the development brief further forward and we will be reviewing our options for the site"
Article courtesy of Derby Telegraph