A regeneration scheme could get back on track after development partners parted company following an impasse.

In October 2012 planning consent was granted for a residential and commercial scheme incorporating Chester’s historic shot tower but not one brick has been laid while work has progressed on the neighbouring Waitrose and new Business Quarter.

Neptune Developments had originally hoped to work with Chester and District Housing Trust (CDHT) but everything changed after CDHT merged with Sanctuary Housing who reviewed all ongoing programmes.

Sanctuary had given a commitment to deliver all existing schemes and Cheshire West and Chester Council agreed to sacrifice its right to veto constitutional changes to ease the merger, but agreement could not be reached.

Managing director Steve Parry accepted some of the delay was also because the previous land owners had gone into receivership and the site was controlled by the bank. However, his company had now acquired the site.

He said: “We are having discussions with another residential operator who are looking at it at the moment. We are looking at tweaking the scheme to meet their requirements.”

Mr Parry said a revised planning application would be submitted in the near future.

The controversial external appearance was unlikely to alter drastically although the lay-out could be reconfigured and the scheme may be less contentious in terms of its impact on the Grade II* listed shot tower which had so worried members of the Civic Trust. 

“It will look similar but there will be less impact, possibly, on the listed building,” said Mr Parry, who hopes to get the programme moving again over the next three months.

He said a bridge from Waitrose, linking both sides of the canal, was now under construction, which was ‘important’.

Sanctuary Housing has not commented.