Local businessman Darryl Kavanagh claims a high profile coffee retailer lined up as anchor tenant for the fourstorey structure on John Street has pulled out of the deal because of delays in winning planning approval for the project. Now Kavanagh claims hell have to "wait and see" if alternative tenants can be signed up before deciding whether or not to proceed with construction on the site of the old Sinnott's Music Shop and Boston Cleaners premises.

The new property is to include retail units on the ground and first floor, a beauty salon on the second floor and a gymnasium and a commercial unit on the top floor.

Local planning activist, Green Party member, Brendan McCann who lodged an objection to the proposed construction with An Bord Plean�la described the demolition of the derelict buildings as "unwarranted".

However local politicians say the proposed development would have revitalised a neglected part of the city.

"Waterford is losing out, " says Labour party councillor Seamus Ryan. "We haven't been able to attract the big retail outfits that are trading in places like Dublin and Cork.

This is a derelict site which is ideal for development. I hope whatever concerns people might have, that the developers will be able to address them."