by Martin Jefferies

Thanet council is threatening tough legal action to secure the rebirth of Margate's Dreamland amusement park.

Officials warn that if the Margate Town Centre Regeneration Company (MTCRC) does not hand over the historic site before the end of July, it could face a compulsory purchase order.

The move would enable the authority to pass ownership of the land to the Dreamland Trust, which wants to transform the desolate site into the world's first heritage amusement park - a project regarded as critical to the regeneration of the area.

A grant of £3.8 million from the government's Sea Change programme has prompted the rush. The funding, awarded last year, must be used by March 31, 2011, or it will be withdrawn. This summer's cut-off date would allow building work to start before the grant offer expires.

Thanet council, which insists a compulsory purchase order would only be considered as a final resort, was due to discuss the sensitive issue in private on Thursday (April 29) - but the confidential plan was revealed at a hastily-arranged press conference on Monday morning (April 26).

Council chief executive Richard Samuel told reporters he is confident that ongoing negotiations will allow the land to be transferred before the deadline for a token payment of £1.

He said: "A compulsory purchase order is very much a fallback option. We're confident that legal action won't be necessary but we're considering this as a way of protecting our interests."

And Harvey Patterson, head of legal and democratic services, added: "This is a once in a lifetime opportunity and we have to think about what we'd do if we were unable to secure the Dreamland site.

"However, all negotiations to date have been about the timing of the handover and we expect things to happen as planned by July 31."

If the land is transferred on time, redevelopment could start at the end of 2010, although much of the building work would not begin until February next year.

The heritage amusement park, which will cost more than £12 million, would open in time for the 2012 summer season. Up to 700,000 people could visit every year.

If a compulsory purchase order is served but challenged by the MTCRC, a public inquiry could be necessary - a process that, if lengthy, could jeopardise the Sea Change funding.