The plan to turn the derelict warehouses beside the Trent into flats, a café and a public riverside walk is dead, after a marathon council meeting that ran past 11pm on Monday.
Councillors voted 23 to 14 to withdraw support, citing rising build costs and a flood-risk report that came back worse than expected.
Supporters say the decision throws away five years of consultation. “People turned up to every drop-in session. They were told this was happening,” one resident said from the public gallery.
The council says the site will be “kept under review” and that a smaller scheme could return to committee next year.
Brit7 News has asked for the full flood-risk report to be published. We will update this story when it is.