A new row has broken out over the future of the run-down King Alfred leisure centre.

Plans for a £290 million sports and housing development on Hove seafront designed by architect Frank Gehry were scrapped on Friday after the loss of financial backing.

Now opinions are divided about what should be done with the existing leisure complex. It has been allowed to fall into a state of disrepair over the past decade while the ambitious plans were developed.

A minimum of £1 million must be spent on it for it to be brought up to health and safety standards.

Residents and councillors have called for the centre to be refurbished to make it a decent public facility once more.

But business leaders and others have urged Brighton and Hove City Council not to waste any money on it if there is still a likelihood it could be redeveloped in the future. Tony Mernagh, chief executive of the Brighton Business Forum, argued that funds should be put into the rundown Brighton Centre instead, to transform it into a modern conference and entertainment venue which would generate millions for the city economy.

He said a refurbishment of the King Alfred would cost between £10 million and £15 million.

Mr Mernagh said: “Even if it is possible to find the money, the refurbishment would not be a stateof- the-art centre. If the council has to borrow, the priority should be the Brighton Centre.”

Councillor Gill Mitchell, leader of the Labour group on the council, backed his opinion.

She said estimates had put a basic refurbishment of the King Alfred at £16 million and urged the council not to spend the money.

Coun Mitchell said that because Dutch bank ING, which pulled the plug on the redevelopment plans, was still willing to be involved if the financial climate improved, every effort should be made to maintain their interest.

She said: “It’s a no-brainer – mothball the King Alfred until it can be properly redeveloped and put the money into the Brighton Centre.”

The council is preparing a report considering the options for the site to go before a cabinet meeting on November 20.

Conservative council leader Mary Mears said: “We want to see a refurbished King Alfred centre and we will do everything we can to ensure that happens.”