Multi-million pound plans for a marina at Bognor have been put on hold until next year.

A decision on whether to continue with the proposals will not be made until 2001 while further details are thrashed out.

Developer McAlpine says it may have to build 2,700 homes on the site to create a development large enough to attract financial backers and leisure operators.

The company originally thought 1,200 homes would be enough but a feasibility study found an extra 1,500 would be needed to make the scheme viable.

Arun, West Sussex and local town and parish councils, who formed the Bognor Regis Regeneration group to look into the proposals, are now re-examining the scheme.

The group believes further investigation and research on the potential benefits and impact for the town is needed.

Arun Council leader Derek Whittaker said: "We still believe a major development such as a marina has the potential to bring long-term investment into Bognor but we need to know far more detail before we commit ourselves and our residents."

Harold Hall, county council Cabinet member for the environment, said: "We are proceeding cautiously. We have reminded McAlpine of the need for transport and environmental impact studies and further public consultation before we reach conclusions on the scheme as whole."

The group expects any proposed increase in the size of the project, especially in the number of houses, to be matched by an increase in benefits for residents.

The proposed marina is designed to put Bognor back on the map and bring prosperity to the ailing resort, which faces an uncertain future with the potential sale of the Butlins holiday centre.

The marina was suggested after plans for a £20 million futuristic new pier collapsed two years ago.

Councillors, businesses and residents hope the McAlpine plans will give the town a much-needed boost.

It includes homes, a hotel, shops, restaurants and a cinema.