The figure was given in response to questions at the annual parish meeting about the amount earmarked for consultants' fees and legal advice before the city council's decision to appoint Orion (Southern) Ltd as its development partner.

City councillors have stipulated the restoration must feature a range of small shops.

The decision to involve a developer avoids the cost of major repair work falling on city tax payers, although the council retains freehold ownership of the property.

Resident Ralph Apel, a former city councillor, questioned why as much as £50,000 had been spent on fees.

The meeting last Wednesday was told the sum would come from council capital reserves, not the tax payers.

Cllr Barry Fletcher said all further fees, following the appointment of the development partner, would be paid by the developer.

The city council had wanted to get the best advice when dealing with a listed building as sensitive as the Butter Market.

And it would be spending only about £50,000 to get a developer which would be spending a very large amount of money – more than £1m – on the refurbishment.

Cllr Mick Shone, chairman of the city finance committee, said in his annual report few could not be aware of the extent of public interest in the refurbishment.

It was perfectly understandable why emotions ran high with any form of change.

"But equally, it is a shame that the city council's intention to ensure this much-loved building is refurbished for future generations has been somewhat marred by disinformation and a degree of confusion," he added.

The city council would retain freehold ownership of the building. There would not be one major user of the building permitted, and the city council's letting agreement with Orion would include a requirement for the provision of products from local firms and suppliers.

"The city council will also have a say in who occupies any of the units," said Cllr Shone.

"However, it has to be clearly understood Orion is making a substantial financial investment to refurbish the Butter Market, including carrying out necessary repairs.

"Clearly rent levels must be able to reflect its investment, but it has to be remembered the rent levels for the existing small units in the Butter Market are the subject of commercial rent assessment now.

"Finally, it must be said a vibrant Butter Market will also recoup financial benefits for the city council and the residents of the city."