Nearly two years after it was approved, a £1.5m project to redevelop the Thameside boat centre in Abingdon has run aground over the terms of a new lease.

Thameside owner Len Baker blames delays on the Vale of White Horse District Council, which owns the land on Nags Head Island, but the council says it has a duty to secure the best possible deal for council tax payers.

In September 2002, Mr Baker received planning permission to re-develop the centre. There was a public exhibition of the proposals that include new chandlery facilities, a wider slipway, a covered space for working on boats with a lifting facility and new workshop.

After public exhibitions there was widespread support for the project from both the town and district councils.

Local businesses said it would help rejuvenate the town. However, discussions with the district council about the lease and rent have reached stalemate.

Mr Baker said he was frustrated but is determined to carry on despite the delay.

The head of the estates at the district council, Andrew Morgan, said the commercial and legal elements of the issue were confidential and he could not enter into any discussion.