“Speaking at an exhibition event outlining consultation feedback on a vision for phase three of the seafront regeneration, Councillor Ben Ingham initially claimed residents in Exmouth had a choice between the two.
The suggestion of a four-storey hotel was among those pitched for the final phase during the two-day exhibition at Ocean.
He later corrected himself, adding that if a hotel or a council tax increase were not acceptable, another alternative would have to be found to plug a £3 million gap.
The district council needs to find the money in order to pay for the realignment of the Queen’s Drive road and car park which formed the first phase of development.
Speaking after the event, Cllr Ingham said: “At the moment, the best and most credible option is the hotel but not to build it and sell it, but to build it and lease it.”