PORTLAND residents have raised the white flag over the contentious Osprey Quay eco-home development – but have vowed to maximise what they get out of the deal.

The 77-home development at Officers Field, Underhill, promises low-carbon homes to be delivered in time for the 2012 Olympic and Paralympic sailing events.

Despite initial opposition to the level of housing and loss of open space, the recently submitted planning application seems sure to be approved.

But the island’s community is determined to invest a £500,000 contribution from the South West Regional Development Agency wisely to improve leisure facilities in the area.

Rachel Barton, from the Portland Community Partnership, said: “People have resigned themselves to the fact the development is going to happen.

“There is no point going over old ground and we want to know what we can get out of it.

“The field is under-used and we are excited about the opportunities for the area.”

Improvements likely to emanate from the £500,000 windfall, which comes from the receipts of the land sale, include: New play facilities and seating for Victoria Gardens.

A new skatepark to replace the current facility.

Improvements to Osprey Quay leisure centre.

Upgrading the sports pitch at Officers Field.

The suggestions were put forward by the Portland community following a consultation at the end of last year.

Coun Tim Munro, mayor of Weymouth and Portland Borough Council, said despite losing out over the housing, the leisure improvements were very welcome.

He said: “We have got a very good second best which is £500,000 being spent on sport and leisure.

“We have got something we weren’t going to get.”

Sandy West, Portland town mayor, said she was positive the development could be beneficial to the community.

She said: “Obviously a lot of people were against development but let’s make it the best it can be.

“There was a campaign to keep Officers Field as a field but we have to balance up the needs of the environment and also housing.

“If they do it properly and it looks right for area, as it has to, then it’s a good thing.”

But Susann Palmer, director of the Association of Portland Archaeology, said the island’s unique nature was being sacrificed for the development. She said: “The area is getting too overdeveloped and it is going to spoil its character a great deal.

“Wherever you go on the island there is development going on, but there is a feeling there is no more point in fighting it.” The 77 homes, to be built by Poundbury-based green developer ZeroC, will be designed to emit half the carbon of current homes.

This will be achieved by technology such as solar water heating, rainwater harvesting systems and biomass boilers.

The planning application goes before the Weymouth and Portland Council planning committee in a few months.