Developers behind an £80 million proposal to transform a prime Brighton site maintain they are still on track – despite submitting a temporary plan for an eco-market.

London-based Cathedral Group is working with the University of Brighton and Brighton and Hove City Council to redevelop Circus Street, Brighton.

The plans, which are expected to include accommodation for 400 students, a university library, dance studios, offices and up to 200 homes, is expected to create 170 new full-time jobs and pump more than £150 million into the local economy over ten years.

However, before submitting a full planning application, developers have applied for temporary permission to create an “eco-market” on part of the site for the next two years.

When revised plans were revealed in February, The Argus reported there was a proposed start date set for June 2013, while the library and other university accommodation would be completed during the 2014/15 academic year.

Despite plans for the temporary market, council bosses have said there was no delay to the scheme adding further details were expected in the coming weeks.

Rob Sloper, of Cathedral Group, said: “The temporary use is designed to pull people back to the area while we get on site, the designs finalised and the planning application submitted.

“At the moment there’s no reason to delay [the redevelopment]. I doubt the market will be there for two years.”

A decision on the separate planning application, which has now been submitted to the city council, is expected in January.

This is for a temporary market which “focuses on, but is not limited by, eco-goods, along with ancillary food and drink attractions”.

The application said: “The market will focus on providing Brighton with niche eco-goods and therefore will not be to the detriment of other local markets such as Open Market to the north and Brighton Flea Market to the south-east.

“It will commence the process of rebirth and growth of the site and the longer term regeneration of the wider area, even prior to the submission of a planning application for the Circus Street scheme.”

Developers said they believe the market will open for a couple of days a week.

However, the application is for seven days a week, from 7am to 10pm – which it claims will mean it can hold events like Christmas markets.

One-off events, such as the Brighton Festival and small art installations, may also be allowed.

Mr Sloper said a full planning application is expected to be submitted next year.

A council spokesman said: “There’s lots of work going on behind the scenes with developers on a revised plan.

“This recent planning application on the market hall proposes putting part of the space to use in the meantime, for a temporary period.

“This is only part of the main development site so when the main development starts it could be elsewhere on the site.”