A major regeneration scheme in Brighton worth more than £100 million looks likely to be dropped next month, The Argus can reveal.

Plans for a huge development at Preston Barracks in Lewes Road are facing the axe after seven years work.

The scheme was to include a Waitrose store, 12,000sqm of office space, 400 homes and an 18-storey landmark residential block.

It was expected to generate jobs in the supermarket, bars and cafés, but also high-skilled IT positions.

But concerns have been raised about whether the project is deliverable or desirable, and Brighton and Hove City Council's cabinet is expected to vote to drop the idea at a meeting next month.

It said other partners were interested in the land, and The Argus understands that Brighton University, which has other buildings around the site, could step in with its own proposals for student accommodation at the derelict army base.

A council spokesman said: "Phase one would involve a food superstore a few hundred yards from a large Sainsbury's, about 90 units of affordable housing, 4,000sqm of speculative office building and 111 student housing units.

"The council is anxious to get the best possible scheme for this key site. If ultimately it's turned down it would be because the council doesn t think these proposals pass that test.

"If cabinet decides against the scheme we're confident there are other partners who are interested in working with the council and Seeda including the University of Brighton, which has already expressed interest."

A Brighton University spokeswoman said: "We have always taken a keen interest in the development being considered for Preston Barracks.

"Should the city now be moving to take a decision on the current proposals, we would welcome the opportunity to be involved in discussions with the city council about the future of this important site."

The project has faced a series of delays since the land was bought by the council, with the help of the South East England Development Agency, in 2002.

The council wanted to use the space for offices and valued it at £2.5million but the Ministry of Defence estimated it could fetch 15 million as a retail park.

A deal was struck at £4 million after the council agreed to include shops but it has been reluctant to include major outlets, presenting a funding gap.

It had been hoped a proposal by developers Hyde Housing to include a Waitrose superstore would allow the project to go ahead.

But this, along with previous proposals to move Sainsbury's from the Vogue Gyratory or to extend B&Q from the next-door retail park, now looks likely to fail.

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