Plans to build a hotel on the site of the town’s famous Jackie O nightclub have been scrapped because of a lack of interest.
It was part of the plan to develop the Espalande along with 30 apartments and commercial space.
Now, a new plan is being submitted for just 28 flats and four offices.
The £4.5m development will include parking.
Retired businessman Alex Penman told The Press he had to withdraw the plans for a 54-bed hotel as there were not any interested buyers – despite the efforts of agents and Fife Council in trying to sell the site.
But despite the setback, he said it remained a prominent area ideal for luxury living.
He said: “Plans for a change of use have been lodged with the Council – it is now going to be 28 apartments and four offices.
“It is a prominent site and a lot of people are wanting to know what’s happening with it.
“We have been trying to sell the hotel site since we got planning permission in principle a year and a half ago – but no-one is interested in a hotel in Kirkcaldy whatsoever.
‘‘Fife Council has been trying as well but there has been no interest – they are bypassing Kirkcaldy because it’s not on their list of priorities. We have all tried our best.”
Last April, it was revealed there had been discussions with hotel operators potentially interested in the development, but Mr Penman said they had “fallen by the wayside”.
Now he is concentrating on building the apartments and gave an insight into what’s planned.
“They will be luxury apartments with two-bedrooms and en-suite facilities,” he said. “Every one will have a sea view and some will have big balconies built to a high specification.
‘‘There will be easy access to the High Street with secure entrances. The apartments will also have lifts which will be a big selling point. I am excited about the plans and want to see the site finished.”