The good news is Dartmouth town centre's bombsite eyesore has gone.

The bad news is it could be months before any building work starts as the owners fight an appeal over a planning bill which has just risen to £232,000.

Demolition crews have finally levelled the prominent town centre site where developers want to build a complex of luxury flats overlooking the Dart.

But Pat Brownett, a director of the company which bought the old St John Ambulance site at the bottom of College Way, warned that his company is still fighting a major battle over the cash planners say they have to shell out to pay for the impact of the development – which covers things like highways, education and even affordable housing.

In fact, the bill developers are being asked the pay has actually gone up – from £150,000 to £232,000 – said Mr Brownett.

Although the planning application for the six contemporary-style concrete and glass flats complex has finally been validated and is now in the planning system waiting to be determined, planners are being asked to study an independent valuers report claiming the development will not be viable if developers have to hand over the cash.

Mr Brownett warned that if the planners continue to insist on the money his company will have no choice but to go to appeal.

'We now firmly believe that we have produced sufficient evidence to prove that we cannot afford to pay the contributions,' he said. 'If necessary we will go to appeal. Last time we went to appeal we won and it cost ratepayers a lot of money.'

Mr Brownett is a director of the Stroud- based Howards Tenens which bought the site for £1m and is going halves on the development with Bradford on Avon company Environ.

There had been concerns after the site was left half demolished for more than a month and it was condemned as a bombsite eyesore in the heart of the town.

Mr Brownett said: 'The gas board finally arrived and said they had switched off the gas supply and that the site could be cleared.'

There is already permission for a more traditional scheme to build six flats on the site which was won on appeal years ago.

Mr Brownett pointed out there were no requests for contributions for that scheme. The current project is for the same number of flats over the same area.

He said: 'I think it is a beautiful scheme that will really enhance the entrance to Dartmouth.'