A COSTLY legal battle looks set to rumble on after council chiefs confirmed they have been recommended to reject a £325,000 out of court offer to settle an ongoing dispute over land earmarked for a replacement mosque.

Dudley Council’s overview and scrutiny management board has recommended Dudley Council bosses turn down Dudley Muslim Association’s offer for the Hall Street site – which already has planning permission to build a new worship and community centre.

An action group, comprising members of all political groups and DMA representatives, will instead be set up to try to resolve the long-running saga and find an appropriate alternative site for the mosque by the end of the year.

The scrutiny board has made its recommendations following a two-day hearing last week, which was watched by around 1,000 people online.

Despite unanimously recommending refusal of the offer, the board has acknowledged in its report that a new mosque is needed to replace the old and outdated Castle Hill facility, which has been deemed not fit for purpose.

Councillor Dave Tyler, chairman of the scrutiny board, said: “We would like to thank everyone who took part in the scrutiny hearings including the public session and also the key witnesses that were called from both parties.

“It is clear there is significant historical opposition to the proposals for a mosque on Hall Street and this opposition is likely to be exacerbated if a development there went ahead. We did not receive any reassurance from the Dudley Muslim Association of a completion date if the settlement had been recommended and the group’s governance and business planning around the proposals is vague. There was also some uncertainty as to whether the proposal was a firm offer from the DMA or subject to further consultation.

“However, all key witnesses and representatives of all political parties indicate there is an undoubted need for a replacement mosque and this is why we are recommending the establishment of a cross-party group to work with the Dudley Muslim Association to identify an appropriate alternative site.”

Councillor Pete Lowe, council leader, said: “We welcome the report and the way the two-day scrutiny meeting was handled. This open and transparent process enables us to take all of the recommendations the scrutiny board has outlined to our meeting of the cabinet to ensure we are able to take a fully informed decision.”

The scrutiny board’s recommendation to reject the DMA’s settlement offer will now go to a meeting of the council’s cabinet on Monday August 17 for a final decision.

Meanwhile court proceedings will continue; a Court of Appeal hearing is scheduled for October.

Amjid Raza, spokesman for Dudley Muslim Association, said the DMA was “very disappointed” with the decision and has branded the proposed action group “yet another delay tactic by the council”.

He added: “We had made a generous offer based on legal mediation which even the council’s own QC had advised was lawful for the council to accept, to settle this long running dispute.

“However, it is clear the council does not wish to settle out of court so this issue still remains politicised.”

Mr Raza said he hopes “justice will prevail” at the Court of Appeal hearing in October.