THE company redeveloping a former school fears it could miss out on a £3million Government grant.

Hallmark Developments is building 87 retirement homes, a 60-bed care unit, and a community centre, at Priory Hall, the site of the former girls’ grammar school, in Colchester Road, Halstead.

When the project was put on hold because of the recession, the company applied for cash from the Homes and Communities Agency’s £925million Kickstart scheme.

In July, the development was shortlisted for funds.

But now the company has learned it needs agreements with its bank and Essex County Council, which has a stake in the site, before it can accept an offer of funding, and the company says the cash may be allocated elsewhere in the meantime.

Hallmark director Norman Ewen said: “The Government has only so much money. Each week which goes by, they are handing it to somebody else.

“There’s the chance we may not get the money and the project would be put on hold until we are able to find it from other sources.

“The agency wants to put the money up. It’s just a question of getting these parties in agreement.”

He said the company was “very disappointed” because the prospect of funding had seemed promising after it was shortlisted.

Jackie Pell, district councillor for Halstead Trinity, said: “Hallmark Developments has started work on the site. They have got to get on with it, haven’t they? They cannot leave it an eyesore.”

Jackie Wilson, chairman of the Priory Community Association, said: “This has been in the melting pot for so long.

“The association is very concerned.

“We are desperate to see something done with this site because, as far as facilities are concerned, in Halstead we are at the bottom of the tree.

“We desperately need new facilities, especially for the elderly and the very young.”