CONTROVERSIAL plans put forward by Bournemouth council to build a hotel next to the BIC will be reconsidered by its cabinet on Wednesday.

Senior councillors will consider several options for finding a firm to construct and run the new “high-quality hotel”.

Plans, including the borrowing of £70m through the Public Works Loan Board, were agreed by the council in March but shelved in May in the face of a legal challenge.

The council put the hotel project out to tender in 2016 but rejected all bids after deeming them to be either not viable financially or operationally.

As a result, it took the “high risk” move of deciding to fund the scheme, which a legal notice published in April valued at £64m, and named Manchester-based Mill Lane Estates and Marick Real Estates of Woking at its preferred partners.

However, concerns were raised about the council’s financial projections and that it was “declaring war” on the hotel sector by exploiting an unfair advantage with private companies unable to borrow money at the same rates.

Bespoke Hotels and Peel Hotels launched a legal challenge over the scheme in April, claiming that the council had not put it out to tender correctly.

The following month, the council shelved its plans to look at alternative funding and procurement options.

Members of its cabinet will consider a report which recommends a choice between two options for tendering the construction and running of the hotel which would “reduce the investment risk”.

The first is a process similar to the one originally undertaken by the council which would not allow it to amend the contract after it has been awarded while the second is a three-stage process involving more engagement with potential developers.

A report to the cabinet says that the second option would “increase the likelihood of a bid coming forward that meets its requirements” and would take about 12-18 months at a cost of more than £100,000.

It says: “Both options would allow the council to engage with the market to deliver a new quality hotel on the site adjacent to the BIC, whilst at the same time leaving open the opportunity for bidders to come forward with alternative sources of funding to reduce the investment risk to the council.”

The cabinet will consider the options at its meeting on Wednesday.