DEVELOPERS are closer than ever to building the Silver Hill scheme with a bus station and affordable housing.

TIAA Henderson Real Estate is reviving £150 million plans first approved in 2009 after their preferred scheme, making a number of controversial changes, was beaten in the courts.

The developer has ticked all but a few boxes in its contract with civic chiefs and told them it can and will prove the old scheme is financially viable – something they denied whilst pursuing their revised plans.

The proposal poised to go ahead includes 95,000 square feet of retail space, a bus station, 287 homes including 100 discount flats, a new car park, a replacement for St Clements GP surgery and improvements to the Broadway.

Meanwhile, an independent inquiry into the Guildhall's handling of the development has been delayed until September. Cllr Frank Pearson, speaking before he was ousted as Tory group leader, said reviewer Claer Lloyd-Jones has hinted it will be “uncomfortable reading for some”.

The return of a bus station and affordable housing will please campaigners who marched on the Guildhall last year to demand more consultation on major projects, but questions are expected to be asked of how Henderson has changed its view of the scheme's viability.

A council report to be discussed at Thursday's cabinet said: "Having reviewed their financial projections and negotiated with a funding partner, SHW1 [Henderson's holding company] consider that the 2009 scheme can be commercially viable and will still bring the benefits that were envisaged when the council approved the scheme."

Cllr Stephen Godfrey, the newly-elected council leader, would not be drawn on how the bus station will be run if Stagecoach maintains its long-held stance that it cannot afford it.

If Stagecoach turns down the lease, the council could run it and charge bus firms a 'departure tax' to help pay the bill, according to the cabinet report, by corporate director Steve Tilbury and head of legal Howard Bone. But Cllr Pearson previously told the Chronicle that the station will be a "white elephant" if Stagecoach doesn't run it.

On Monday, Cllr Godfrey said: "It would clearly not be our first choice by any means. "We're a local authority providing public services, we're not a bus company. It shouldn't be our priority."

Henderson and the council are free to walk away from their agreement on June 1, provided the final conditions have not been fulfilled. The city council could therefore abandon Henderson on this date if it has not proved the scheme is viable.

But Henderson has indicated they will agree to push this back to October 1, giving councillors time to evaluate any submissions in light of the Lloyd-Jones report.

Decisions on Henderson's viability calculations are expected to be put to a special full council meeting. But the Lloyd-Jones report – already delayed by the summer recess, members' holidays and the volume of evidence she must consider – could be pushed back further, leaving councillors unable to implement any recommendations before they decide on the scheme.

The city council's apparent determination to push on with Silver Hill will frustrate Cllr Kim Gottlieb, the rebel city councillor who beat Henderson's preferred scheme in the High Court.

In a letter to the Chronicle, calling on the city council to ditch their development partner, he wrote: “When Henderson arrived on the scene in 2010 at the height of the recession, it's easy to understand why the council might have thought that it had no options. But that is not the case now.”

“It is getting another chance now and in the best interests of the city, it really has to say goodbye to Henderson.”

Henderson has yet to reply to a request for comment.