DEVELOPERS desperate to regenerate the crumbling Locarno are threatening to sue Swindon Council for more than £1m.

Businessmen behind plans to redevelop the site said they have been constantly let down by the council, after it rejected their scheme for a hotel with flats and pubs alongside.

Over the last four years, developer Steve Rosier said he and his colleagues had spent £577,000 drawing up blueprints to bring the listed building in Old Town back to life.

He believed they had the support of the council – until a “staggering” last-minute change of heart led to their hotel scheme being turned down last week.

Now he intends to take action to recoup the costs of years of work.

Director of Bach Homes (Locarno) Ltd, Mr Rosier, 55, from Princes Street, said: “Our investment to date is £577,000, without having built anything.

“I’m seeing my lawyers today, and will be undoubtedly commencing certain legal actions to recover our £577,00 investment.

“We’ve been completely misled. They no longer want this building, they want something smaller.”

Asked about what he would hope to recover, Mr Rosier said: “It’s going to be seven figures, at least – £577,000 towards consultants, lost.

“Four years of time and people and resources, legal costs, and probably some sort of lost profit opportunity amount.”

David Christie, 67, from Great Bookham in Surrey, is a 20 per cent shareholder in the company.

He said: “They had a change of heart at the 11th hour, and 59th minute.

“We were confident this thing would get past.

“We’re not giving up on it. We can’t afford to give up on it.

“We thought we were moving forward.”

Owner of the Locarno, Gael Mackenzie, 46, who lives in the Cotswolds, said the council is to blame for a number of regeneration projects in the town failing.

He said: “I wouldn’t say it’s untypical of how Swindon Borough Council has handled other projects; the town centre, the old college site.

“They seem to have a great way of alienating people who want to regenerate the town.”

Mr Rosier also said that he wants legal action taken against the ward councillors themselves, because they changed their minds and refused to back the hotel scheme at the planning committee meeting last Tuesday.

Coun Mike Bawden (Con., Old Town), said: “That’s entirely up to him. We didn’t have a vote, you have to remember.

“I gave our views on behalf of all three of us (the ward councillors). We didn’t vote to refuse it, or for it.

“If he takes legal advice that says there’s a case against us, that’s his judgement.”

“I’d say the officers followed normal procedure and when they published their advice, they recommended refusal. It’s normal, standard procedure as far as I’m concerned.”

A spokesman for Swindon Council refused to comment on the threat of legal action.