A firm hoping to develop a controversial plot of seafront land have threatened protesters with legal action if allegations of corruption continue.

Bosses of the Whitstable Oyster Company have issued the warning to campaigners who claim the land was purchased at a knock-down price from Canterbury City Council.

The Oval Chalet, now little more than wasteland next to the town’s seafront, was bought by Sea Street Developments for £150,000 – well below the true value of the land, critics claim.

Its directors include members of the Green family, who own the Whitstable Oyster Company and adjoining Tile Warehouse.

The company plans to build holiday homes on the site, which used to be a skating rink.

But campaigners want to retain the land as public open space and say its sale should have been put out to tender.

In a statement released today, the Whitstable Oyster Company said: “We have spent three years in the planning process developing a cohesive redevelopment proposal for the whole site of the Oval Chalet and the warehouse site that enhances a very prominent but neglected area of Whitstable."

“We are custodians of some important historic buildings in Whitstable that have been refurbished and maintained while operating as businesses that create wealth and employment for the community as a whole. This site, once redeveloped, would be no different..." - directors of the Whitstable Oyster Company

“This represents a substantial investment for us and shows our continued commitment to and investment in Whitstable, controlling all the land within one company facilitated this process.

“Independent counsel’s opinion on the sale process has exonerated the council and Sea Street Developments Limited and confirmed the process and valuation were completed in a proper manner.

“Allegations of corruption and inciting hatred are very serious matters.

“We feel we can no longer ignore the manner in which the Oval Chalet campaign and individuals have inferred wrongdoing. This is very damaging to our reputation.

“Any further allegations will be referred to our legal representatives.”

“It is disappointing that at no time has anyone from the campaign approached us or any of our representatives in order to discuss our proposals and have chosen instead to use ill-informed allegations to further their cause.

“The Whitstable Oyster Company is essentially a family-run business whose directors and families live and work in the area.

“We have invested heavily in Whitstable and are proud of the businesses we operate and feel they are, and always have been, an attraction for Whitstable and have helped make Whitstable the town it is today.

“We are custodians of some important historic buildings in Whitstable that have been refurbished and maintained whilst operating as businesses that create wealth and employment for the community as a whole. This site, once redeveloped, would be no different.

“Some residential units will be sold to reduce our borrowing but the commercial and short term letting units will be kept and operated alongside our existing units in the area.”

The Whitstable Oyster Company says the development will create three full-time and three part-time jobs and bring extra income into the town.

The statement continued: “These will be added to the existing 125 employees, 70% of whom live within the CT5 postcode.

“We have invested heavily in the oyster farming side of the business in recent years as we feel it is important that Whitstable retains its links with this industry.

“We have returned the last wooden fishing boat built in Whitstable to the Harbour as again this retains links to our heritage.

“We look forward to a long future supporting the community through sustainable investment and employment in traditional and tourist-related industries.”

Suzanne Blaustone, co-chair of the Oval Chalet Preservation community group steering committee, has responded to the statement.

She said: “It is vital to remember that the Oval Chalet Preservation community group has issues with Canterbury City Council - not Sea Street Developments Ltd.

“Nevertheless, we are surprised and disappointed that the directors of the Whitstable Oyster Company have released this statement.”

Mrs Blaustone claims it is untrue that campaigners have not approached the company for comment, claiming they spoke to director Barrie Green on the site “some months back”, but the conversation was cut short.

She also claims the community group is not aware of the company approaching the community while working on the plans, prior to the public presentation of the proposed and completed development at Hotel Continental in May.

She added: “We have every right to protest and deal with this matter democratically as Canterbury City Council have already publicly admitted flaws in the sale process.

“And we also disagree with their assertion that ‘the process and valuation were completed in a proper manner’.

“We believe that the council’s legal counsel is incorrect and that their land valuation is incorrect – and we have every right to question it.

“Our own independent land valuation by a professional firm of independent charter surveyors indicates that the land value did not achieve best value or best consideration.

Nevertheless, we would love to sit down and talk to Sea Street Developments.

“We are not opposed to communication about this very important issue.”