A proposal to "kickstart" the regeneration of Gosport High Street by turning a former clothing store into 14 flats has been withdrawn.
Civic chiefs are no longer considering plans submitted in 2022 by Daryn Brewer, of Regen Gosport, who applied for permission to transform the disused Burton building.
A decision notice published on the borough council's planning portal lists the application as "withdrawn".
It comes after fast food giant McDonald's was given planning permission to turn part of the same building into a restaurant and takeaway.
Mr Brewer's scheme was given the green light by the council in 2023, subject to the completion of a Section 106 legal agreement.
Speaking at the time, he said: "We’re delighted that we've got our permission - it's a prominent building which will kickstart the regeneration of Gosport High Street.
"The flats will benefit the local market and assist first-time buyers to get on the ladder or wishing to rent in the area.
"It’s taken us 14 months to get that planning through, that’s not a great bit but I don’t want to sound negative."
The scheme included an extension to the back of the building and the retention of a commercial unit on the ground floor.
Mr Brewer said: "We believe the 70sqm shop will be able to be rented by local traders, independent traders. The business rates will be lower and the rent will be lower because they’re not renting the whole building."
READ MORE: McDonald's set to return to Gosport High Street after six-year absence
A separate application to turn the ground floor into a McDonald's was approved by the council last summer.
McDonald's said the scheme would create 30 full-time and 90 part-time jobs, the equivalent of 62 full-time posts.
A previous McDonald's outlet on the other side of the High Street closed in 2018 following the completion of a drive-thru just off the A32 at Brockhurst Gate Retail Park.
But the company later reversed its decision to quit the town centre after researching the area and concluding that "the time is right" to re-establish a presence in the High Street.
A council report said: "The proposals would result in no loss of ground floor retail space. The proposals are, therefore, an acceptable and appropriate use within the town centre."
The authority's planning portal does not say why Mr Brewer has withdrawn his application to convert most of the building into flats.
It was constructed in the late 1930s and boasts a foundation stone that was laid by the company's founder, Raymond Montague Burton.
A McDonald's spokesperson said: "We are excited about the opportunity to open a restaurant in Gosport this summer. The restaurant will bring significant investment to the local area and deliver up to 120 full and part-time jobs."
Mr Brewer has also been approached for comment.
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