A shipyard which has been subjected to a spate of arson attacks could be transformed into a smart riverside development - but developers say they can’t offer any affordable homes.

Proposals to rejuvenate the former Acorn Wharf, also known as Acorn Shipyard, on Gas House Road, Rochester, would see three blocks of flats and a riverside walk with various attractions.

But while the area is in line for a much-needed facelift as part of a 132 flat planning application which includes a new cafe, pier, and yacht moorings, developers say affordable homes are not in the works.

The applicant claims the £2.2million needed for a sea wall and to increase the ground level for flood prevention means affordable homes and infrastructure contributions aren’t viable.

The site, just east of Rochester Bridge and north of the sixth phase of the Rochester Riverside development which is planned, is on the former land of Acorn Shipyard.

It was previously the main base for the New Medway Steam Packet Company, which ran steamers from Rochester to Sheerness and Southend.

If approved, the plans would see 132 one and two-bed flats across three blocks, ranging from five to nine storeys.

There would also be two further buildings, one for a cafe and another for either commercial space or a community centre.

The riverside would be redeveloped to create a walkway beside the water and a new pier which could be a mooring spot for yachts and other pleasure boats - as well as the relocation and refurbishment of an existing crane which will become a central feature of the area.

The application says architects have considered the historic nature of Rochester through their designs, including using materials and styles which are inspired by the naval history and local monuments such as the castle.

It also says it has sought to ensure the new buildings don’t obstruct views of local landmarks from across the river.

However, the location of the proposed development sits entirely within flood zone three, meaning it is currently extremely susceptible to flooding, and so drastic work would be needed to raise the ground level and build a river wall and flood defences costing £2.2million.

The developers calculate, based upon average Rochester property prices, they would earn £42.3million from the plot.

But it would only earn them a profit of around £800,000 because of the £31.3million cost of construction plus the cost of the river wall and additional administration and marketing costs.

They argue S106 payments - financial contributions to local infrastructure such as schools and GP services, as well as mitigation of wildlife impacts - or having to sell some of the flats at a discount as affordable housing would further reduce those margins.

Officers will consider this argument and will make a determination about whether the value of the development to the community outweighs the lack of S106 contributions and no affordable housing allocation and decide if an exemption is allowed.

Documents in the application also highlight potential issues with the road network, suggesting the current roads would not be sufficient to accommodate lorries entering and exiting the area via the one-way loop which was introduced to facilitate pick-up and drop-offs for the nearby Rochester Riverside CofE Primary School.

The development would also come with a total of 128 car parking spaces on the lower ground-floor level of the blocks, as well as eight motorcycle spaces, and 132 bicycle spaces.

The plans also include landscaping with the planting of 44 new trees and the creation of 1.2km² of biodiverse green roofs on top of each of the buildings.

The proposed location was first developed in 1897 and was consistently used for the maintenance and construction of ships - including the Medway Queen, which was one of the ‘little ships of Dunkirk’ who assisted with the evacuation of allied troops in May 1940, making seven trips across the channel rescuing more than 7000 men.

She returned to civilian service in 1947 and was the last of the New Medway Steam Packet companies’ ships in active service.

The ship is now moored in Gillingham, but the proposals say the new pier could facilitate the ship to be permanently moved there.

However, in 2016 the Acorn Shipyard, which occupied the site, went bust and the vacant buildings were subsequently victim to arson attacks and unauthorised Traveller encampments.

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The application has been made by Offset Architects on behalf of Mach 5.

A decision by officers is expected by October 29 which may have to be considered by Medway Council’s planning committee.