MAIDSTONE'S dream riverfront housing development is on the verge of becoming a reality, it has emerged. The deadlock between the borough council and Cadbury Schweppes has finally been broken with groundbreaking talks between the two parties.

The council's deputy chief executive Trevor Gasson has met Cadbury's head of group property Robin Worthington and the riverfront housing development was top of the agenda.

It was the first meeting between the two parties since Secretary of State Stephen Byers threw out the firm's plans to build retail warehouses on the old Trebor Bassett site, St Peter's Street, in August. Further meetings are being planned between the two groups, while Cadbury Schweppes works on a plan for the site to which both sides will agree .

Mr Gasson said: "I was delighted to find that Cadbury Schweppes reacted so positively to proposals for residential development on the site and I am very optimistic that it will be possible to work out a proposal that is mutually acceptable."

Jim Thompson, director of policy for Maidstone and Mid Kent Chamber of Commerce, Industry, Training and Enterprise, said: "What we would like to see now is the whole site developed from end to end with a balance of housing, cafes, bars and restaurants."

At least six housing developers have approached Cadbury Schweppes about building luxury and affordable housing at the old Kreemy Works factory in St Peter's Street.

Maidstone council is believed to be in talks with neighbouring landowners Homebase and Courts over moving their warehouses from the riverfront. That would leave the entire site free for redevelopment.

It is understood that the council has not ruled out the possibility of issuing a Compulsory Purchase Order for the land if both retailers refuse to budge.

Paul Alcock, chairman of the Town Centre Management Initiative, said: "Residential development would give the river frontage what it deserves and provide between 600 and 800 new houses to house people who work in the town. It is essential, however, that the whole of St Peter Street is redeveloped and if other sites in the area are not available the council should consider compulsory purchase orders."