A derelict eyesore, voted by readers of The Argus as the ugliest building in Sussex, could remain a blot on the landscape for the next 20 years.

The owner of Anston House, which greets motorists as they approach Brighton town centre on the A23, is putting on hold plans for a development of up to £140 million because he does not trust councillors to approve it.

The old office block in Preston Road has been derelict for nearly two decades.

For years the Brighton and Hove Economic Partnership has been lobbying Anston Properties Ltd to redevelop the site. But the building's owner, who lives in Monaco, has said he is wary of taking his plans forward after seeing major schemes elsewhere in the city being rejected.

In recent months councillors have turned down plans for new apartments at Brighton Marina, including a 40-storey tower praised by the Commission for Architecture and the Built Environment, plans for a £1.5 million glass arts centre adjoining Brighton College and an application to build a 12-storey tower at the Texaco garage site in Hove.

Although plans have not yet been submitted to redevelop Hove's King Alfred centre, Frank Gehry's design has been mired in controversy. Residents protested and English Heritage withheld approval.

Speaking at a meeting of the Brighton and Hove City Forum, Tony Mernagh, executive director of the Brighton and Hove Economic Partnership, said: "Brighton is locked in the mind-set of do nothing, build nothing. Developers don't need us. We need them."

Mr Mernagh received a letter from the owner of Anston House outlining his intention to put the development on hold.

He said: "He has put together an outline for a scheme of £117 million to £140 million. He is reluctant to take it any further because of the climate. He is sitting on a very valuable property.

"This derelict building remains an eyesore. It could provide employment.

"We have been trying to persuade the owner to do something with it."

In a poll by The Argus of the ugliest buildings in Sussex in 2004, three-quarters of participants voted for Anston House.

The block is decorated with self-portraits by art students at Brighton College used to cover the building's broken windows.

The building is said to have the potential to offer up to 40,000sqm of new office space. It is one of the areas identified as being suitable for tall buildings in the council's tall buildings strategy.

Over the years there have been numerous applications to demolish the building to make way for new developments.

Although permission has recently been granted to convert it into a hotel, it is thought the owners want to build a mixed residential and commercial development.

Averil Older, who sits on the planning committee, said: "The owner is at fault for leaving it in such a condition."

Broadcaster Simon Fanshawe, chairman of Brighton and Hove Economic Partnership, said: "The partnership keeps urging the planning committee to raise its eyes above the horizon."

Les Hamilton, chairman of the city planning committee, said: "A hotel would create quite a few jobs. It would be an amenity for the city."