Plans for a cinema on North Street car park have been dealt a crushing blow by Scarborough Council.
The council’s cabinet met to consider putting the site up for sale at a behind-closed-doors meeting on Tuesday.
However, the council has now published from the minutes from the meeting showing that the cabinet rejected this idea.
The minutes state the reason for the refusal were: “To ensure that the Council’s property is used appropriately and to retain the site as a short stay car park facility
“Release of the site did not provide sufficient certainty that best value for the Council could be achieved.”
A five-screen cinema has had planning permission in North Street since 2008.
The site would not have been able to be sold directly to one party and would have had to be put out to tender,
The car park generates around £300,000 in income each year for the authority.
Nikolas Shaw, the owner of the Opera House Casino and man behind the North Street cinema bid, said: “We will have to go away and assess our options.
“We are very disappointed.”
Earlier this year planning councillors rejected plans for a seven-screen cinema and restaurants on the former Atlantis site in North Bay.
This decision opens the doors for the plans, from Water Park developer Benchmark Leisure Ltd, to be resubmitted.