A SQUABBLE over £250,000 has killed off plans for a multi-million pound flats revamp of Newton Abbot’s empty Queens Hotel.

Developers have retreated to the drawing board after Teignbridge planners threw out their bid to convert the venue into 21 apartments.

The Bristol-based company behind the venture say the ‘eyesore’ building could even be demolished with a completely new scheme put up in its place. This would would exclude the need for any affordable housing contribution which was the sticking point requirement in the thwarted enterprise.

The local authority felt developers Coyne Group should offer around £250,000.

But they hit back, insisting the sum quoted ‘far exceeded’ any profits to be made on the project.

Coyne group spokesman Kim Smith admitted: ‘We could not agree anything that was close and feasible.’

Teignbridge, in throwing out the application, confirmed that the proposals failed to make adequate provision for affordable housing in accordance with policy targets.

‘In the absence of any overriding justification, it is considered there is no case to depart from the policy requirement,’ the council ruled.