Belfast City Council (BCC) has raised concerns over a lack of progress on the proposed £360m Royal Exchange scheme after it was reported that the development had fallen victim to the economic downturn.

In November last year, developer Leaside Investments was given nine months by the council and the Northern Irish Department for Social Development (DSD) to draw up a planning application for the mixed-use project in the city's north east quarter. However, plans are yet to be submitted and BCC officials are now seeking answers from both the DSD and Leaside Investments, a joint venture comprising William Ewert Properties and Snoddon Construction. ING Real Estate is also involved with the scheme.

William Humphrey, chair of BCC's development committee, said: "It is my understanding that Belfast City Council has not yet received any formal communication from either the DSD or the developer, and this means that the council's development committee will now have no choice but to re-visit the current position at our September meeting. "I fully appreciate that the market has changed radically. However, I remain committed to seeing the area preserved and developed in a way that is economically viable and don`t want to see things drift."

Humphrey also revealed that the area set to be transformed by the Royal Exchange scheme, which will cover 800,000sq ft (74,322sq m) and incorporate restaurants, bars and cafés, is due to form part of a wider cultural tourism strategy for Belfast. The project, which was originally due for completion in 2013, will also include the creation of a new theatre and a community art gallery in the former Northern Bank building, along with a new hotel between Lower North Street and Church Street.