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The Sunflower pub has been saved from the bulldozer after plans for a £300m development project were ditched.

Campaigners had feared the well known bar, on Belfast’s Union Street, was facing demolition under the Northside regeneration scheme.

But it emerged on Wednesday that the Department of Social Development has pulled the plug on controversial plans to redevelop the city centre area between Royal Avenue and Carrick Hill.

Proposals included as many as 3,000 apartments and houses, mostly for students, as well as retail outlets, offices and a hotel. But there was opposition with some residents in Carrick Hill expressing fears the student flats would become a “holyland in the sky”.

Other elements of the regeneration meant the Sunflower would be demolished even though it was crowned best city bar at the Ulster Pub of the Years awards in November.

Speaking to Belfast Live today owner, Pedro Donald said: “DSD have pulled out so hopefully it means we’re safe. It’s fantastic news. We’ll see what happens later, but I don’t believe it’s just a stay of execution, it’s more permanent than that. I’ve never been against the regeneration of the area, I want to see it happen, but if there are new plans I just want to be included in them.”

A spokesperson for the Department for Social Development said they had a “proposed comprehensive development of a set of sites in the north of Belfast City Centre which had experienced dereliction and neglect over a number of years”.

But they added: “Following a recent assessment of the scheme which took into account a number of areas where the Developer had not met requirements set by the Department the Minister has decided with regret that the scheme proposed by Northside Regeneration Limited should not be supported by his Department at this time. The Minister has however thanked NRL [Northside Regeneration Ltd] for their efforts and wishes them well for the future.”

The development consortium appointed by the DSD in 2014, Northside Regeneration Limited, expressed “surprise and disappointment” at the move.

In a letter, the contents of which were broadcast by the BBC this morning, the DSD said that it “has no alternative plans at this time”.

However, it added that “other options can now be explored” and said it is committed to “the regeneration the area needs”.

The development consortium - a partnership between local developer Kevin McKay and international firm Balfour Beatty - is now seeking an urgent meeting with Social Development Minister Lord Morrow.

Responding to the DSD move, Frank Dempsey of the Carrick Hill Residents’ Association said the project was “ill-conceived from the start”.