A decision on a controversial planning application to regenerate working docks has been pushed back just a day before it was due to be voted on.

Peel Waters’ plans for the redevelopment of Chatham Docks into a business hub called Basin 3 have been deferred from the agenda of Medway Council’s planning committee tomorrow (May 8).

The council has made the decision following a legal challenge which it is seeking advice on before proceeding.

ArcelorMittal KentWire, a business on the site, wrote to the local authority explaining legal advice it had received saying it might be illegal to approve the application.

Phil Taylor, former chief executive of ArcelorMittal Kent Wire, which supplies steel for construction, said he was glad the authority was listening to its concerns and it would work with the council to reach the correct result.

He said: “It does not mean the fight is over, we will still attend the planning meeting to demonstrate the strong feelings about this to the council.

“I am happy with the current outcome and we will work with the council to resolve this situation in the proper way.

“It’s ludicrous that you would lose the hundreds of jobs currently on the site in favour of a promise which cannot be guaranteed.”

The proposals would see the closure and relocation of the businesses currently operating on the site and the demolition of the existing warehouses in favour of a series of workspaces of various sizes.

The application received 172 letters of objection after being submitted in January.

However, the plans were recommended for approval from council officers last week.

Most recently, an executive from ArcelorMittal, which would have to relocate if the plans went ahead, wrote a letter to Michael Gove arguing the secretary of state should intervene and put the application on hold.

In a letter obtained by Sky News, Matthew Brooks, who manages ArcelorMittal’s construction solutions, said if Peel Waters’ proposals went ahead the company would be ”left with no alternative” but to leave Chatham Docks and, more than likely, “cease operations in Britain, given the lack of suitable alternative sites".

The Save Chatham Docks campaign has also opposed the plans and has received support from the Medway Lib Dems, and Rochester and Strood MP, Kelly Tolhurst (Con).

The Tory MP said she was pleased the application would be receiving greater scrutiny as she did not feel officers had properly considered all of the impacts of the closure of the docks and its unique benefits for business.

She said following her Westminster Hall debate in parliament on May 1 which sought to bring national attention to the situation, she and ArcelorMittal KentWire requested the plans be called in to the Planning Inspectorate.

Ms Tolhurst added: “I’m pleased if people are going to look at this sensibly and understand why the docks are so important not just for local industry but for a wider impact.

“Any delay is good because it gives an opportunity for the facts and evidence to be scrutinised.

“This is a project which has major consequences not just for the businesses there now but for the future of Medway and to allow such an important piece of infrastructure to turn into a pond because it won’t be used is ridiculous.

“I’ve felt that because the activity in Chatham Docks is industrial, it’s not very pretty or it’s not understood by all, the value hasn’t been significantly accepted.

“We’ve got a strong maritime community here and I’ve not met anybody who thinks closing the docks for commercial activity is good for anyone.”

It is unknown how long the application will be deferred for while Medway Council considers the possible options for the situation.

Leigh Thomas, development director at Peel Waters said: “Whilst we’re disappointed that the planning application won’t be going to planning committee tomorrow, the significant benefits that the Basin3 proposals will deliver, including trebling the number of jobs on site, remain unchanged.

”The proximity of the universities presents a fantastic opportunity for this site to target the council’s key economic growth sectors and meet its longer-term objective to become a waterfront city.

“Delivering a new waterfront pedestrian and cycle link with green public spaces - connecting St Mary’s Island and Chatham Waters - will also provide public connections through the site for the first time ever.”

He also believes the Basin3 proposals will help attract “significant inward investment” into Medway.

“Peel, who are the applicants and owners of the site, have unrivalled experience in waterside regeneration and a track record to match,” he added.

“One example of this in Salford, where an outline consent on a site of a similar scale and characteristics led to the delivery of Media City, creating a vibrant business hub with thousands of new jobs.

”The proposed Basin3 development is also aligned with the relevant policies in Medway’s statutory development plan and the National Planning Policy Framework and has received no objections from the statutory consultees.

”Given the significant benefits and alignment with local and national planning policy, we hope the Basin3 application can considered by Medway’s planning committee as soon as possible.”