Neighbours of a listed Art Deco hotel will have to wait to find out if it will be turned into 300 flats.

Councillors deferred a decision over the future of the Grand Ocean Hotel in Saltdean until developers provide details of how the infrastructure would support the influx of new residents.

Brighton and Hove City Council's planning committee was due to decide yesterday whether to give planning permission for the flats on the site.

However, the decision has been put back until next month while the committee debates how to spend money set aside by developers for the community.

A spokeswoman for Brighton and Hove City Council said: "The firm who will build the flats are required to provide extra money for the council.

"This is spent on making sure the city can support the people who move into the new development."

The money could be spent on health, education or other key services that the new residents would be using.

The committee need to agree on the fine details of spending before they can approve the four blocks of flats.

Council officers have recommended approval of the plans, which would develop and restore the main building and ornamental garden.

Buildings behind it would be demolished and larger spaces in the main building, once used as a dining room or library, could become a doctors' surgery or community space.

Up to 30 per cent of the flats would be affordable housing and the renovation would uncover features like a dolphin mosaic currently hidden under carpets.

Designed by award-winning architects Rolfe Judd, most apartments would have parking facilities in a 200-space underground car park.

Officers suggested that listed building consent be given as long as a site visit takes place.

Papers being submitted to the meeting say that Saltdean Residents Association was concerned about traffic problems and the plans for affordable housing.

The 70-year-old hotel in Longridge Avenue has been closed since January.

It opened in 1938 and was used by the fire service and the Army during the Second World War. In the Fifties it was bought by Sir Billy Butlin and turned into a "leisure hotel". In its hey day, it could cater for 700 guests.

Recently it played host to a highly-acclaimed piece of theatre for the Brighton Festival.

Physical theatre company Frantic Assembly filled the empty rooms with actors and took audiences on a tour through the deserted space.