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Plans to convert the historic former Sheerness military hospital into accommodation for homeless people have been scrapped.
A £6million price tag to convert the building, which was first used to treat injured and diseased Royal Navy sailors in 1857, means the scheme will not be viable, says Swale council.
Cllr Ken Pugh (Con), cabinet member for housing and wellbeing, said: “A feasibility study has been carried out to assess possible uses and costs of those uses regarding the military hospital.
"This included converting the site into housing. The cost of bringing the hospital back into use is not considered viable. The cost of conversion to housing would cost over £6million.”
Cllr Pugh was answering a question from Labour's Cllr Ghlin Whelan at yesterday's Full Council meeting.
He added: “The council continues to look for opportunities for affordable housing projects but any options that may emerge in the future would require a business case to establish operational and financial viability.”
Malcolm Staines, who collects for the Island's homeless and is campaigning for more temporary accommodation, said: "This news is such a shame. I really can't understand how it could possibly cost that much.
"It would have been for families who just need a roof over their heads. Instead, this building will now sit there doing nothing. It is a diabolical waste."
He said the Island's homeless problem was getting worse mainly because of the introduction of universal credits.
He said: "Some landlords are good and realise there will be delays in getting their rent paid but others just kick their tenants out.
"We have about eight sleeping rough and that doesn't include those living in their cars. Many have had to move from holiday camps which have been closed over the winter."
When temperatures plummet to below zero, rough sleepers are offered emergency accommodation in the Medway Towns but when the weather improves they are put back onto the streets.
"Although we are living in the 21st Century, it continues to shock us that there are people within our community who are homeless" - Trish Codrington
Mr Staines has also been hoping to open up unused offices in the former HSBC Bank building and the abandoned Salvation Army hall in Sheerness to shelter the homeless.
In the meantime he has been given three tents, six cookers and six kettles from Minster Parish Council.
Council clerk Trish Codrington said: "Although we are living in the 21st Century, it continues to shock us that there are people within our community who are homeless.
“The parish council finds this completely unacceptable and so is working with Malcolm to support anyone in distress and is trying to find a solution to this growing problem.”