MP Mark Garnier says he is "disappointed" Wyre Forest District Council are planning to sell the former Lloyds Garage site in Stourport.
The site has been used as a temporary car park on Bridge Street after the local authority acquired the land more than a decade ago.
The Wyre Forest MP said original plans to redevelop the site to create a gateway with new walkways to the canal basins were "exciting" and would have been a "fantastic visitor draw."
But, the council is now consulting on closing the temporary car park and selling off the land after failing to find a "viable development" for the site.
Andrew Booton, chairman of Stourport Civic Society, said that it would be a "kick in the teeth" for residents, fearing the sale would "destroy" hopes of developing a gateway in the future.
Reacting to the plans, Mr Garnier said: “The old Lloyds Garage site on Stourport’s Bridge Street has been abandoned for too long.
"The original proposals were exciting and would have provided a fantastic visitor draw for this historic town.
"But for one reason or another, these ambitions have been replaced by poor alternatives and I am disappointed the council has decided to sell up, rather than continue to work for a vibrant and enticing entrance to our canal basins.
"I am working with local organisations to help secure the right future for the site, and Bridge Street as a whole.
"Stourport needs support, and that was why I moved my office to Stourport a couple of years ago.”
The Shuttle reported in August 2020 that Wyre Forest District Council’s plans to build three-storey accommodation to house homeless people at the site were rejected by the planning committee.
Councillor Dan Morehead, Wyre Forest District Council’s cabinet member for economic regeneration, planning and the green agenda, said that it's "disappointing" that a development hasn't been secured and that the site is "not sustainable" in its current form.
He said: "We have tried many times to secure a viable development on the site which was acquired by the Council over 15 years ago by agreement with the previous owners.
"That has not been possible and we are now looking to sell it. It is disappointing but market forces over many years have not been favourable, developers have not been forthcoming, and this site is not sustainable for the council in its present form.
"Analysis of our ticket sales shows that the car park, which was intended to be temporary, is not being used to its capacity and many of those who are using it have moved from other car parks in the town where there are still spaces.
"As the temporary planning permission for the site’s use as a car park expires next February, this is the right time to undertake this consultation.
"Our consultation runs until Wednesday 13 November and is open to any interested person or organisation to respond.
"We will carefully consider all responses received, including the civic society’s, in deciding whether or not to remove the temporary car park from the car parking order, which is the sole focus and purpose of the current consultation.
He added: We understand that some residents may feel that Stourport has not benefited directly from the £40m in UK Government funded schemes such as the Future High Streets Fund and the Levelling Up Fund.
"The reason for this is that a formal adopted Vision for Stourport-on-Severn was not available at that time.
"We are currently working with the Government’s High Street Task Force and Stourport Town Council to develop and implement a vision for the regeneration of Stourport town centre.”
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