THE THREAT of legal action still looms over a Hampshire council - despite a judicial review being dropped.

Developers TH Real Estate (THRE) are considering whether or not to pursue a claim against Winchester City Council over the now axed Silver Hill development in the city centre.

THRE are weighing up whether or not to try and claw back their losses after the £150m scheme was axed.

It comes after they dropped plans to press ahead with a judicial review.

As reported yesterday by the Daily Echo, the developer is no longer looking to challenge a High Court ruling that the council acted unlawfully in taking over the scheme.

Council leader Stephen Godfrey said: “I’m content that the challenge wouldn’t have been successful and pleased that the developer has recognised that.

“I think we can get back to dealing with what the council should be dealing with rather than working with our lawyers all the time.”

He said the legal threat could hang over the council for several years, but said it had sought legal advice before it made the decision to terminate.

This was revealed as senior councillors approved a complete review of the whole Silver Hill site which will see members of the public asked how they want the area regenerated.

The council says this is the first step in moving forward after it kicked the developer off the £150m project earlier this year.

But as reported by the Daily Echo yesterday, the council heard it could be another seven years before any development emerges.

The supplementary planning document will set out what in general terms should happen to this part of Winchester to meet immediate and future needs, consulting with local people and businesses.

Cllr Godfrey said: “We’re starting a new project. This is day one of the new project.”

Cabinet members approved £100,000 for developing the new planning document, work on which is estimated to cost a total £200,000.

The council will look at whether to hire external consultants.

Consultation is expected to run from August to December ahead of publication of draft plans around September next year.

Cabinet also agreed to purchase the building currently housing St Clements GP surgery, in Tanner Street, which plans to move to a new facility and retain the freehold on property it owns in the Silver Hill area.