Colchester Council spent £2.7 million to stop plans for a shopping centre on the town's Queen Street bus station, the Gazette can reveal.

Papers released to the Evening Gazette under the Freedom of Information Act reveal details of property deals currently being investigated by the Audit Commission.

The developer now behind the Vineyard Gate/St Botolph's £250 million shopping centre, Leeds-based CFK Developments, was in advanced discussions with House of Fraser to be the flagship store at the redeveloped bus station site.

The plans, revealed to Colchester Council in a private meeting in 2002, showed a multi-storey car park, department store, shops arcade and replacement bus facility.

CFK's plans went against Colchester Council's ideas for regenerating the St Botolph's Quarter, and it held negotiations with the developer.

Colchester Council then agreed to swap Kwikfit with Roman/St James House, and hand over £2.7 million.

The deals are being investigated by the Audit Commission after town MP Bob Russell questioned the council's annual accounts for 2003/04.

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Published Tuesday, February 8, 2005

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