Developers of the controversial commercial leisure scheme at Crystal Palace, may be forced to pay compensation costs to Bromley Council after failing to complete the lease last year.

The London Borough of Bromley has lodged a claim with the High Court for security costs of £700,000, incurred by the council while negotiations for the £75m multi-leisure complex were in progress.

Developers, London & Regional Properties, were due to begin work on the South London site in October 2001, but failed to complete the lease on time, causing Bromley Council to abandon the scheme. The project, which faced fierce opposition from residents, who feared the loss of 12 acres of open park land, was for a mixed-use leisure site anchored by a multiplex cinema.