THANET council is preparing for battle over ownership of Margate's Dreamland site.

It has submitted its case to compulsory purchase the former fun park to Eric Pickles, the Secretary of State for Communities and Local Government.

The move comes after negotiations with the site's owners, who include businessman Jimmy Godden, broke down in a dispute over how many new homes would be allowed on the site.

Mr Godden's firm, Dreamland Leisure, is now one of the objectors to Thanet council's proposed Compulsory Purchase Order (CPO).

A planning inspector will decide whether the authority can buy the site against the wishes of its owners in a hearing scheduled for January.

Thanet council claims to have a "compelling case" for compulsorily purchasing the Dreamland site. It would then hand it over to the Dreamland Trust, which has plans to turn it into a heritage amusement park.

Documents, called a Statement of Case, have to be submitted by the council. They include the Dreamland Trust's projections for how the park will work financially as well as details of the work to bring the site back into use, including restoration of the Scenic Railway and the cinema.

The project has already been awarded £3.7 million from the Sea Change programme and £493,000 from the Heritage Lottery Fund (HLF) with a decision expected this month on a Round 2 bid to the HLF for £3 million.

The council's statement describes the Dreamland site, at present, as "a 'hole' in the centre of Margate, which has potential to deliver enormous economic, social and environmental benefits to the district."

Leader of the council Bob Bayford, said: "I'm sure the publication of this will be widely welcomed by the public, as we know how much support there is from both local people and visitors to bringing Dreamland back into use as an amusement park. With the opening of Turner Contemporary, Margate has already received a huge boost this year, and Dreamland represents another huge opportunity for the town."

Chairman of the Dreamland Trust, Nick Laister, said: "The Statement of Case makes it clear why this project needs to move forward as quickly as possible. I know all the directors of the Dreamland Trust are disappointed that we were not able to bring this forward in partnership with the owners of the site, but our funding is time limited, the condition of the Scenic Railway is continuing to deteriorate and the town is suffering the effects of its biggest attraction being closed. We need to ensure that this opportunity is not lost."

A public inquiry into the council's plans to compulsorily purchase the Dreamland site will be held at the council offices on January 10.

A report from the Planning Inspector, following the inquiry, is expected in late February or early March. This will then be submitted to the Secretary of State, who will make a decision which could be as late as June next year.

Objections, all lodged by London-based Fladgate LLP, have been sent to Mr Pickles from Toby and Emma Hunter, Gibralter-registered DMS 3 Ltd, Midos Investments and Midos Services, Margate Ride Ltd which owns the Scenic Railway and land around, Margate Cinema Ltd and the Margate Town Centre Regeneration Company (MTCRC) which owns the remainder of the land.

Both Midos companies, the Margate Ride and Margate Cinema companies are registered at the same address as the MTCRC.

In addition, Girlings solicitors have lodged an objection to the CPO on behalf of Jimmy Godden's company Dreamland Leisure.

The objectors state that they do not believe Thanet council needs to purchase the land compulsorily and that the plans are not sustainable.