BCP Council has allocated £150,000 to put together an acquisition strategy to look at encouraging the former Holes Bay power station site to be redeveloped.

Cabinet members approved plans, including the possibility of using a Compulsory Purchase Order, due to concerns plans for the site had “stalled”.

Poole council and now BCP Council have described the land at Holes Bay in Poole as “integral” to its plans to “revitalise” the town centre and it is allocated in the borough’s local plan for 850 homes.

A planning application has been submitted by landowners London and Quadrant and Lands Improvement Holdings but a report published ahead of Friday’s cabinet meeting said they had “confirmed” they no longer intended to continue with a scheme.

Poole council first designated the site – the largest brownfield area in the conurbation – for housing more than 20 years ago.

In 2012 the £37 million Twin Sails Bridge was opened with a 1,350-home and commercial development proposal put forward at about the same time.

But concerns were raised about the viability of the scheme due to “exceptional” costs, including the estimated £20 million required to relocate its substation.

Homes England also allocated £5 million for a joint approach with Homes England, Dorset Local Enterprise Partnership and the landowners to develop the site.

At Friday’s meeting, councillors were urged to take the opportunity to encourage more community facilities to be provided and a more environmentally-friendly approach to be taken.

Cllr Mark Howell, cabinet member for regeneration, said this was a “great opportunity” to provide a development which was “much better for the community”.

“The current application has stalled,” he said. “We can now look at this again and try and get things moving.

“We have been contacted by the managing direct of Lands Improvement Holdings who said they were still very interested in delivering housing.”

Cabinet members unanimously agreed to approve work to put together an acquisition strategy for the site.

In a joint statement last week, the landowners said they were "committed" to working with the council to develop the site.

“There are numerous complexities involved in bringing this site forward for development in terms of legal, planning, remediation and infrastructure, some of which have been mentioned in the council report," it said.

“We have a live planning application which is at an advanced stage but we have been delayed due to a holding objection from Natural England relating to the scheme’s impact on Holes Bay Special Protection Area.

“Due to where we are with the planning application and some of the conditions of the Dorset Local Enterprise Partnership funding agreement, we were unable to enter the agreement and apply it towards the project, which was a disappointment to us.

"Nonetheless, we remain committed to working with the council and stakeholders to finding ways to bring forward this important site for much needed homes.”