A MULTI-million pound project to create a maritime park with 158 new homes on Felixstowe seafront has been delayed due to the credit crunch and economic downturn, it has been confirmed.

A MULTI-million pound project to create a maritime park with 158 new homes on Felixstowe seafront has been delayed due to the credit crunch and economic downturn, it has been confirmed.

The £25 million project for the 17.5-acre south seafront has been put on hold until March 2010.

Work was due to have started on Martello Park on September 29 with completion by April next year.

The postponement was confirmed at Suffolk Coastal District Council's meeting last night, following a request from the contractor.

Residents have been assured the council will secure the derelict properties on the site and proceed with their demolition early next year, while investigating possible temporary uses of the land.

Robert Whiting, cabinet member for resources, said: “Given the national picture following the credit crunch and the significant drop in the housing market, it is no surprise that Bloors, our preferred development partner for the project, has serious concerns about commencing with the plans for the south seafront site.

“Bloors remain committed to the project, but like everyone else they cannot predict how long this current slump will continue or even if the market has yet reached its lowest point.

He added: “It is disappointing news for all of us, but we have to accept the current economic realities however unpleasant they are.”

The £1.8 million leisure facilities includes a variety of new play equipment for all ages, with water play jets, picnic areas and seats, cycle paths, gardens and a small stage and seating area for musical and theatrical events.

There will also be 59 beach huts, kiosks, landscaping, public car parks and a new toilet block.

Sale of houses will also generate further funds to refurbish the Napoleonic Martello Tower and kick-start plans to use it for an arts, heritage or education project.