The search is already under way to find an alternative option for redeveloping the King Alfred.
The deadline for Crest Nicholson to sign a development agreement with Brighton and Hove City Council is just a week away.
But the stalling Brexit negotiations may yet see everything collapse, councillors were told this afternoon (Thursday 21 March).
Three years have passed since Crest Nicholson was identified as the preferred developer for the £230 million project.
The scheme involves building a new leisure centre with a swimming pool and hundreds of flats on the seafront site.
Council leader Daniel Yates told the council’s Policy, Resources and Growth Committee that officers were working hard to finalise the project by the deadline of Saturday 30 March.
The Labour councillor said that the company was still willing to sign but it was necessary to look at other options to keep the project going forward.
Almost £1 million has already been spent on preliminary work and £15 million funding has been pledged by the government.
As well as a new swimming pool and leisure centre, some 600 flats are planned on the seafront site, with blocks up to 20 storeys high.
Save Hove campaigner Valerie Paynter asked Councillor Yates how long it should take for a project like this to be agreed and for a development agreement to be signed.
Councillor Yates said that there was no specific length of time set for projects like this but it had been hoped that it would have taken six months.
He added: “It is fair to say no one on this council is pleased with the amount of time it has taken to get to this point.”
At this stage, he said, he would have expected the project to have progressed further and to be at the planning stage
Future updates will be brought back to the committee after the local elections take place on Thursday 2 May.