An aborted scheme to allow a private firm to take care of Ilkley landmarks has cost taxpayers almost £1 million.

Bradford Council has paid out £825,000 to building services company Carillion in a legal settlement over the abandoned asset management project.

The scheme would have handed over the maintenance of Ilkley’s lido, library, local authority theatres and sports centres to Carillion.

But the council pulled the plug prompting Carillion to file a lawsuit two years ago to recover millions in lost profits.

The asset management deal would have seen 600 key buildings handed over to a private firm to run, including offices, swimming pools, libraries, theatres and sports centres. Carillion was named as the preferred bidder, but the scheme was suspended in 2005 on the day the contract was expected to be signed off by the executive.

There were anonymous allegations that the bidding process had been skewed in Carillion’s favour. The whole scheme was later abandoned in 2007 without the allegations being substantiated.

A ten-day High Court hearing had been scheduled for February, but the council has settled the case instead.

Council chief executive Tony Reeves said: “The council has now settled litigation with the company Carillion plc, after careful consideration and bearing in mind potential escalating legal costs. Carillion’s claim against the council was for £17 million. The cost to the council is £825,000, including its legal costs. Both parties will pay their own legal costs.”

Council legal costs are expected to be £100,000.

Carillion sued for the amount it would have made in profit over the 20 years of the deal or compensation of £943,000 to cover the costs of preparing the contract bid.

Plans for the asset management project caused councillors in Ilkley and Adding-ham, to rally together.

They feared the project would pave the way for the full privatisation of historic landmarks such as the King’s Hall, Manor House, White Wells, Ilkley Town Hall and Ilkley Library.

Councillor David Green, the Bradford Labour group’s spokesman for regen-eration, said this week he estimated the failed deal had cost taxpayers up to £6m.

“This is hopefully the end of one of the biggest financial disasters the Council has ever seen. When you take into account the procurement process, consultants and this payment, we estimate it will have wasted £6m of taxpayers’ money,” he said.

The council’s deputy leader, Dale Smith (Con, Wharfedale), said: “Despite the fact no contracts were ultimately awarded, a lot of work carried out in relation to the asset management project has proven to be extremely useful for the council in seeking to make best use of its resources.”

Liberal Democrat group leader Jeanette Sunderland was aggrieved the council had had to pay out as the money could have been better spent elsewhere.

“When any council enters contracts on this scale there are risks,” she said.