Controversial plans to redevelop Belle Vue House in Sudbury are still set to be debated by councillors this week, despite one of the developers pulling out.
However, just days before the controversial plans went up for consideration by the council, developer McCabe & Abel has pulled out.
Bosses at the firm say they have been unable to agree a deal over the sale of the site with fellow backer Churchill Retirement Living.
In a statement, McCabe & Abel said: "After more than a year working to secure the onward sale and restoration of Belle Vue House (subject to planning), we unfortunately are no longer able to proceed any further with Churchill Retirement Living.
"Our attempts to save Belle Vue House from demolition started in 2015, so seven years on, we are extremely disappointed and stressed regarding the current situation with Churchill Retirement Living.
"For the onward sale of Belle Vue House for restoration and preservation, McCabe & Abel were issued with a 27-page legal contract from Churchill Retirement Living with totally unworkable contract terms.
"By contrast, a similar property recently purchased directly from Babergh District Council came with a 7-page legal contract. This enabled the sale to proceed swiftly and resulted in an award-winning heritage development.
"As there is now no clear plan for the restoration and preservation of Belle Vue House, we can no longer support and be a part of the planning application.
"The best outcome for Sudbury and Belle Vue House is for the planning application to be refused and for the sale of the site to be revisited."
McCabe & Abel has also requested their architectural drawings are removed from the application.
In response, a spokesman for Churchill Retirement Living said: "We remain committed to the restoration of Belle Vue House and the provision of much-needed housing for older people."
A Babergh District Council spokeswoman said: “The Churchill Retirement Living planning application will be considered by members of the planning committee on Wednesday, with the application covering the construction of 41 retirement living apartments and the conversion and restoration of Belle Vue House.
"We cannot comment further on next steps until we know the committee’s decision.”
Polly Rodger Brown, spokeswoman for the Belle Vue Action Group, which has been fighting development at Belle Vue Park, said: "The ambitious plans for Belle Vue House are surely now null and void.
"With regard to the house, its future is once again uncertain. Our long-stated compromise at Belle Vue in order to help achieve our aim of opening up the park was always to sell the house to a sympathetic heritage developer and use those funds for the front of the park."
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