A SCHEME to transform the city’s West End will be delayed after the developer lined up to be a major partner pulled out.

The Oxford Mail has learned Exemplar, the firm hand-picked by senior Government officials to help redevelop Oxpens, has said it no longer wishes to be part of the project.

It was previously on course to complete a deal with the Department for Transport subsidiary London Continental Railways (LCR) to purchase 7.9 acres of land at the site, next to Oxford Ice Rink.

Oxford City Council – which owns most of the remaining land – would have then partnered with it to build up to 400 homes, 10,400sq m of office space and a 155-bed hotel and leisure facility.

But city council leader Bob Price said Exemplar had now decided not to proceed because “they are not comfortable with a 50-50 partnership”– a requirement seen as vital by the local authority.

And he revealed that in a bid to press on with the project, the city council was trying to buy the extra land itself at the same price LCR had offered it to the developer.

A spokeswoman for LCR confirmed the land was on the open market and an offer from the city council would be considered.

Mr Price said the local authority’s bid could not be disclosed due to commercial reasons but it is understood it approaches £10m. He told the Oxford Mail: “We are going to need to look at bringing in a new partner quickly with the possibility that they could split the cost of purchasing the land.

“We now have to go back to LCR and see what we can achieve.”

A masterplan for the site agreed by the city council in November 2013 envisages a boulevard along Oxpens Road and public spaces in the new development, with a focus on a mix of residential and commercial buildings.

Earlier this year Mr Price said initial work on the site – costing £6m and funded by a Government grant – could start late next year and would involve looking at how to protect the area from flooding.

But this week he said: “Realistically it is now bound to be delayed.”

LCR spokeswoman Hanna Smith revealed bidders, including Oxford City Council, were being invited to put forward offers for the site and chief executive David Joy added: “ Following a thorough process to secure a developer for the site, we have decided to bring our share of the site forward for unconditional sale.”

Exemplar declined to comment.