NO DEAL: Wickford town centre
Basildon District Council had been working with Community Solutions for Regeneration (CSR) to create a new library, health centre and swimming pool for the market town, amongst other improvements.
However, at a cabinet meeting last Wednesday, the council took the decision to call off the talks, leaving a question mark over whether the plans would ever come to fruition.
Councillors said they were disappointed that they were not able to reach a compromise.
Cllr Stephen Horgan, deputy leader of the council, said: "Sometimes in business you just can't come to a deal.
"In this case, largely due to the recession, we couldn't make the two ends meet."
CSR was the last of four bidders trying to take on Wickford's regeneration with the council.
But the failure to come to an agreement means the masterplan to bring Wickford into the 21st century is impossible.
Cllr Horgan said: "There is no doubt that having this in place would have been the best option.
"We wouldn't have been pursuing it otherwise.
"And we haven't been working on a plan B."
He said the council was still committed to improving Wickford.
"This does mean that the process will become more complex.
"It is likely that it will cost more and take longer than if we were able to do it as planned."
The council has already spent more than an estimated £700,000 on the scheme, including creating the masterplan itself.
Cllr Malcolm Buckley, cabinet member for the environment, said: "The masterplan is still the framework we will use to carry on, so most of the costs we have incurred will still go to good use when we undertake individual projects."
The £320,000 promised in the council's budget last week for sprucing up the High Street will remain unaffected.
Council leader Tony Ball said: "We hope that proves our continued commitment to Wickford.
"Doing nothing there is not an option for us, and we will deliver the improvements it deserves."
A spokesman for CSR said: "We have worked through the recession exploring solutions to the council's requirements and we are disappointed that a way forward acceptable to the council has not been achieved.
"That said, we have a strong and amicable relationship with the council."