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Last night, Liverpool City Council claimed it was a vindication of the decision taken by its planning committee.
But Cllr Peter Millea, executive member for regeneration, said the city centre had lost out on a vital development.
He said: "This scheme was just what the area needed. It is not just about a block of flats, it's about everything that attracts.
"It would bring shops and amenities, which are desperately needed in that area.
"That part of town needs some landmark features. The scheme also offered good quality accommodation. We cannot just keep churning out cheap social housing.
"People want the type of housing that it offered.
"I'm disappointed by this decision."
Chieftain, under general manager Sean O'Sullivan, commissioned heritage consultants Roger Wools and Associates to carry out a comprehensive assessment of its proposal on the site in Skelhorne Street. They reported that the scheme would "preserve and enhance" the surroundings.
Although the inspector believed it would meet regeneration and housing requirements, the appeal was turned down because of the impact it would have on the William Brown Street conservation area, which is part of Liverpool's World Heritage Site.
Mrs Kelly also backed the inspector's findings that a cluster of tall buildings by Lime Street station would dilute the essence of the character of the area historically and visually.
Chieftain's only option of attempting to revive the project now is to take it to the High Court, but it is believed unlikely that will happen.
The company always believed the council turned down the plans because its tower was just yards away from another tall building being constructed by public sector body English Partnerships as part of the Lime Street Gateway project, which council officers have backed.
Chieftain feared the council favoured the public sector scheme at the expense of its own.
English Heritage had also raised concerns about the Chieftain plans, claiming skyscraper style developments around Lime Street would have a serious impact on historic buildings. CABE - Commission for Architecture and the Built Environment - called the tower inelegant and over- complicated.
A city council spokesman said: "The planning inspector is an independent expert who has thoroughly vindicated the planning committee's stance on this application."
No one from Chieftain was available for comment last night.
Source:
icLiverpool
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