Oak Holdings has confirmed that Rotherham Metropolitan Borough Council (RMBC) is to terminate a development agreement for the £350m YES Project.

The local authority has issued the developer with notice of its intention to end the deal, which will come into effect on 31 January. Oak Holdings entered into a preferred developer agreement for the leisure and sports scheme with RMBC in May 2003, which has encountered delays due to the downturn.

In a statement, Oak Holdings blamed the failure to secure the necessary funds to commence the development phase for RMBC's decision to cancel the deal. However, the developer said that it would be reviewing its options and intends to continue in its role as operator of the Rother Valley Country Park.

An Oak Holdings spokesperson said: "Oak continues to own the valuable freehold of the A57 land adjacent to the site of the YES Project - the consented access land. "Oak is also engaged in a consultancy project in the Czech Republic which is continuing and a longer term UK consultancy project."