THE developer behind a £150m scheme in Winchester has officially been axed.

Winchester City Council cabinet members rubber-stamped the decision to terminate the development agreement with property giant TH Real Estate (THRE) for the proposed Silver Hill scheme.

It comes after the city council voted resoundingly to end the contract 46 votes to one on January 28.

However the council could be facing the threat of legal action after shelving the developer.

In a letter sent by THRE lawyers to council officers, they claim that the council would be “irrational, unreasonable and unlawful” to terminate the developer agreement before the determination of an appeal over a judicial review. previously brought forward by rebel councillor Kim Gottlieb.

The judicial review, brought by rebel Cllr Kim Gottlieb last year, ruled the council acted unlawfully in its handling of the multi-million pound scheme.

THRE argued in the letter that the judicial review proceedings prevented them from finding an investor willing to provide funding for the scheme.

The scheme could still go ahead in the future, although council leader Stephen Godfrey said it is unlikely any decisions will be made this year.

He added it was "unlikely" anything substantial will be built on the site for three to five years.

Speaking before cabinet members decided to terminate the agreement, Cllr Godfrey said: “There is no reason for anyone to be rejoicing. It is bad for Winchester but only less bad than the alternatives.

“We have to face facts that the options we have do not include building out the current scheme, therefore it is the end of the line for the developer.

“We have seen no reason why we should allow an extension to allow the judicial review to run its course, we find no reason to try to retain the compulsory purchase order, or use it ourselves and yet there is a great need for Winchester to have this area in the city regenerated.

“We have received much advice, both legally and financial about the best way forward and considered that before council this does seem the best way.

“It is with reluctance that we are faced with this difficult decision that is in the paper today.”

Cllr Godfrey also reiterated the councils desire to rebuild part of the crumbling Friarsgate car park, restore the empty Coitbury House health centre and improve Kings Walk shopping strip.

Portfolio holder for environment, health and well being, Cllr Frank Pearson, said: “We had promises last year that have not yet been met, they have had a chance and they have blown it, so I agree terminate it.”

Portfolio holder for housing services Cllr Caroline Horrill also called the agreement to be axed.

Cllr Horrill said: “We have given due time for those individuals to fulfil there part of the agreement. I think it is absolutely clear to me and I hope to others today we have to at some point say enough is enough.”

Cllr Kim Gottlieb said: "I am disappointed by the council’s inability to recognise the many failures in the 2009 scheme, and disappointed by their ongoing inability to understand the development process which is complex and needs time and the right team of people involved.

“The most important thing today was that the council should have responded the moment the judicial review judgement was issued a year ago. “

“The signs were all there in the judgement, and essentially the council has wasted another year going round in circles and still has no idea which way it is facing.”

Former city councillor Karen Barratt labelled Cllr Godfrey’s comments on the report as “quite insulting" and called on him to apologise.

She said: “It gives a bad impression of Winchester City Council, having commissioned the report you are quick to rubbish it the public perception is terrible, I feel embarrassed for Winchester."

Cllr Godfrey hit back and said he has no intention of withdrawing the remarks and accused Mrs Barratt of not reading the report.

Cllr Brian Laming said: "In any public company the board of directors would not allow this lack of detailed knowledge to arise. This simply should not happen as it puts the future of the organisation at risk. It is a case of the blind leading the blind, very unprofessional and potentially catastrophic."

Cabinet will decide at a special meeting on February 18 whether the council holds onto land in Silver Hill bought in 2014.

The next stages for the scheme, and the development of St Clements doctors' surgery, will be considered on March 29.

TH Real Estate did not respond to a request for comment.