Tendring District Council (TDC) said talks with the company and the government would take place next month in a bid to rescue the Bathside Bay development.
Last month, the government announced a public inquiry over the changes and Hutchison said it was concerned at possible delays.
In a letter to the council, the developer said it had decided to to withdraw the application "in light of the anticipated costs and delay" associated with a public inquiry.
TDC leader Cllr Neil Stock said the company¡¯s decision was a blow, but he understood its reasons.
He told the BBC: "They must have been absolutely gutted when they heard the government had gone for a public inquiry and quite frankly I am not surprised they pulled the application."
"We constantly hear that planning should not stifle the country¡¯s economic growth, but then the secretary of state for the department of communities and local government seems to go totally against that edict where Bathside Bay is concerned."
He said the development was vital to the local economy and its regeneration. |
