Dutch development company Move had been in talks with the States since 2004 about transforming the Victorian fort, originally designed to house 346 people when it was built in 1855, but vacant now for more than 40 years.
In 2020 updated proposals for the site – with a price tag of £18m – were put forward, envisioning the building as a five-star, 72-room luxury hotel with a swimming pool and conference centre.
But the States of Alderney said that after extensive discussions over a number of years, Policy & Finance had decided to not go ahead with the development.
The committee said the project would have required financial support from the States of Guernsey and Alderney’s government as well as assurances on air connectivity.
‘The States has a duty to demonstrate that it is acting in the best interests of the local taxpayer in financial and commercial matters,’ a States spokesman said.
‘It is difficult to do this when the market was tested so long ago. However, the States of Alderney may wish to consider its options again in the future, in which
case it would test the market afresh.’
Previous plans to repurpose the building as flats, a hotel, a casino and a hangar, have also failed over the years.
The northern defences of the building were opened to the public following extensive clearance work, but the site is otherwise derelict.
Members of the public are always able to access the fort though it is advised to take a torch.