Modus Properties, the company financing the multi-million pound Ocean Plaza project has hit back at a press report which claimed the scheme had run into trouble. A spokeswoman for Modus said the project had been delayed because they were in the process of agreeing the scope of the flood defence works.

She said: “As a company we're really looking forward to start the first phase of the development and to working with the community in Rhyl.

“At the moment we are moving towards the initial phase of development commencing in autumn of this year and the entire development being completed for 2011.”

Ocean Plaza, located on the former Ocean Beach Funfair site, will be made up of 237 apartments, a new Asda superstore, shops, office and leisure space and a 89 bedroom hotel and is considered one of the key projects in Rhyl’s re-development.

A spokeswoman for Denbighshire County Council said: “Modus is continuing to work closely with Denbighshire, the Welsh Assembly Government and Environment Agency to overcome the many issues that need to be addressed on site before any building work begins such as flood alleviation works and the siting of electricity sub stations.

“This is one of a number of regeneration projects in this part of Rhyl that will improve the quality of life for residents and visitors.”