A multi-million-pound project to flatten a derelict arcade and replace it with high-end flats could begin next year, developers have revealed.

The vision for the eyesore Neptune’s amusements in Herne Bay has been heavily delayed by the environmental issues at the Stodmarsh nature reserve, caused by waste water entering its lakes.

But Canterbury-based Mile Property Group has unveiled plans to build a sewage treatment facility beneath the new block.

Should this proposal be given the green light by Natural England, director Michael Keckes hopes to move diggers onto the site in 2022, with the work expected to be completed the following year.

“It means any waste water from our site will be cleared before entering the public sewer,” he told KentOnline.

“There will basically be zero nitrogen and phosphorous produced from our development. It will add substantial costs – it could easily be £100,000 – but that’s the only way to mitigate against that.

“This is a temporary solution, before Canterbury City Council works out a more permanent one.”

The environmental problem at Stodmarsh has halted progress on a number of major developments across the Canterbury district.

This came after Natural England called for construction to stop when it discovered high levels of nitrogen and phosphorous – caused by treated effluent – entering the lakes through the River Stour.

Canterbury City Council and Ashford Borough Council have been working on solutions, which include the creation of additional wetlands, to mitigate the impact on the nature reserve.

“We’re just waiting on Natural England to say the private treatment plant is suitable. It should be any time now really,” Mr Keckes continued.

“We’ve been stuck since April last year, so it’s nearly 18 months we’ve been waiting.

“If we start fairly soon, it will be finished in 2023.”

The Mile Property Group’s plans include demolishing the decrepit Central Parade building and replacing it with 10 flats above commercial space on the ground floor.

Mr Keckes previously revealed he had hopes of enticing the likes of Costa Coffee into the business area – but now remains tight-lipped about its future.

“I can’t confirm anything at this point,” he added.

“The development will be a huge improvement. The site’s attracting a lot of anti-social behaviour.

“We’ve had loads of break-ins there and people have been illegally dumping residential and commercial waste there for the last 18 months or so.”

Mile Property Group signed off on a deal to buy the rundown plot in Central Parade last March – four months after the 0.2-acre site was first advertised for £900,000 by Kent Estate Agencies.

In 2014, other developers were given the go-ahead by the city council to erect a four-storey building, containing three shops and 10 homes, in place of the arcade.

They also had a bid to construct nine flats to the rear of the plot approved by the local authority – but both sets of permissions have since expired.

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