Winchester City Council to vote on final hurdles to £150 million Silver Hill scheme

The controversial scheme of shops, homes and public facilities will go ahead if civic chiefs agree its developer, TH Real Estate, has ticked the final boxes of the deal.

Officers have warned ahead of three crunch meetings that there are no credible alternatives to the £150 million regeneration. They say ditching it without "exceptional reasons" could put the council at high risk of legal action from the developer.

Meanwhile, Save Britain's Heritage has revealed further details of its alternative plans, saying it will reduce its height to a maximum of four storeys and preserve several historic buildings.

TH Real Estate, formerly known as Henderson, has submitted evidence that their 2009 scheme is financially viable. This is the most contentious of the deal's three remaining conditions as company bosses denied this when promoting a revised version. They must also name a funding partner and housing association to manage the project's discount flats.

If these conditions are accepted at Council next Wednesday, the scheme will go ahead. The developer hopes to be on site by winter.

The viability documents have been circulated to councillors but remain private under commercial confidentiality.

However, auditors Deloitte and property consultants Knight Frank have been named as the firms who independently assessed the figures. Deloitte will also brief concerned councillors on how the viability of the scheme has changed.

The 54-page report to Council, led by corporate director Steve Tilbury, admits that city chiefs should have put the contract out to tender in 2004, echoing a High Court judgment earlier this year. However, its legal advisors have rejected claims by rebel councillor Kim Gottlieb that the Development Agreement, and related Compulsory Purchase Orders, can or should be scrapped on this basis.

Cabinet and overview and scrutiny committee will discuss the submissions at special meetings on Monday.

Save Britain's Heritage's fresh proposals include a hotel, independent shops instead of national chains and a distinctive glass building on the corner of Friarsgate and Middle Brook Street. Historic buildings like the Victorian antique market at Kings Walk would be preserved.

Architect Huw Thomas's Silver Hill designs for Save Britain's Heritage - the corner of Friarsgate and Middle Brook Street

The charity - which led efforts to redevelop Peninsula Barracks in the 1990s - wants to invite several Winchester architects to design parts of the site.

SAVE's executive president, Marcus Binney, said: “As at Peninsula Barracks we are preparing a scheme which can be a credit to Winchester, one of the most important cathedral cities in the country. It will be viable, attractive and built with a sense of place, as well as responsive to local needs and aspirations."