THE redevelopment of Abingdon’s Old Gaol offers good value for money, says a report by the Audit Commission.

The Vale of White Horse District Council asked the independent watchdog to review the deal after residents raised concerns about the sale of the former leisure centre to developer Cranbourne Holdings.

The £25m project in Bridge Street will see the construction of 61 two- and three-bedroom homes, including eight penthouses with terraces overlooking the River Thames.

A total of 24 affordable homes will also be provided as part of the deal — 14 in Harcourt Way and ten on the site of the former ambulance station in Springfield Road.

Abingdon-based Cranbourne was chosen by the Vale council in 2007 to buy and develop the site following a competitive bidding exercise and lengthy negotiations.

Work was due to begin on the development last year, but the owners of Cranbourne said archaeological digs and talks with various bodies were taking longer than expected.

The project will also include shops and restaurants, and will result in the riverside gardens being open to the public for the first time.

Tony de Vere, leader of the Vale council, said: “I am convinced this deal offers the best outcome for our residents and for the town. I am delighted the Audit Commission has endorsed this view. I hope this will put an end to people’s concerns.

“We called in the Audit Commission because we were confident we had acted correctly and they have confirmed this is the case.”

The deal for the development was renegotiated last year following a decline in the property market and in view of the economic climate.

The scheme is dependent on certain requirements being met.

These include archaeological work, resiting an electric substation and an order closing part of Turnagain Lane.

The Audit Commission inspectors have concluded that the project offered by Cranbourne was the best on the table and remained higher than the second best offer, even following the renegotiated deal.

The Old Gaol operated as a leisure centre from the 1970s until 2002 .

The Audit Commission’s report can be seen at whitehorsedc.gov.uk