CIVIC leaders have vowed to drop the Silver Hill developer unless they start the regeneration within weeks.

The move has sparked a war of words with the firm and raised the prospect of Winchester City Council relaunching the £150 million scheme alone.

TH Real Estate (THRE) has been told to go ahead with plans for the city centre, including a bus station and 100 affordable flats, by February 9.

Newly released letters show civic chiefs accused the developer of making “untrue” and “bizarre” claims and attempting to confuse councillors over key decisions.

THRE, formerly known as Henderson, U-turned on its promise to start work by Christmas, asking the authority for more time and the chance to change its proposals again.

But the cabinet pledged last week to end the developer’s contract if the regeneration doesn’t go ahead by February 9. Under the terms of the deal, THRE would then have another 20 working days to put the project through before they are dropped for good in March.

Council chiefs have started planning for life without a development partner, warning there is a “complete absence” of other builders willing to take the scheme on.

Leader Cllr Stephen Godfrey told the overview and scrutiny committee on Monday: “Despite protestations to the contrary, there has not been a series of other people wanting to break down our door to take on the development of Silver Hill. In fact [there is] a shortage, a complete absence of others. I think it would be very difficult.

“However, the situation is that the majority of the land will be owned by three entities – ourselves, Henderson’s and Stagecoach. I would expect to find some way of developing it separately but in tandem, or in some other way which perhaps wouldn’t need a development partner, in the same way we’re developing Station Approach.”

The council’s row with THRE became public this week as it released previously confidential Continued on page 2 correspondence with the firm.

In a letter delivered through lawyers, THRE said the council had been “unreasonable” because it “misinterpreted” the developer’s intentions and did not seek clarification from solicitors.

THRE also suggested it should have been given access to the legal advice behind the council’s ultimatum. Lesley-Anne Avis, partner at the council’s advisers, Berwin Leighton Paisner, branded the request “somewhat bizarre”.

In a response sent on Friday, the council claims THRE’s letter “contains an inaccurate and selective chronology of events and makes various claims which are misconceived and untrue. Regrettably, it appears it was designed to obfuscate our client’s consideration of matters at the Cabinet meeting on 13 January.”

Cllr Godfrey also revealed on Monday that the council wants to buy St Clements Surgery in order to rescue its relocation to Upper Brook Street, currently tied up in Silver Hill.

However, he added: “There’s a lot of reasons why we wouldn’t be able to. The owner might not want to sell it to us, but that’s what we hope to do.”

THRE cancelled a Chronicle interview with development director Martin Perry, scheduled to take place on Monday.

Mr Perry said in a statement: “We note the council’s decision and will now be considering matters.”