COUNCIL officers are racing against time to find a major investor to kickstart the Mixenden Hub development.
If they are unsuccessful a £663,000 grant is likely to be spent elsewhere.
Calderdale Council received the Performance Reward Grant money for meeting targets.
Cabinet ruled the money should be spent on the hub where shops, a library and community facilities are planned on land around the former Jumples pub.
Councillor Barry Collins (Lab, Illingworth and Mixenden) said attempts had failed to attract a medium-sized supermarket as the centre-piece of the scheme.
“It is true there is a time limit on spending that money before it’s withdrawn,” he said.
“Because of the recession we have not been able to attract the supermarket we were hoping for.”
The council has also hit difficulties with other support funding and officers are now looking to recast the original scheme.
Councillor Collins said: “But, the scheme is very much active and the council is working with all our partners. There is now a possibility we might be able to achieve some health service involvement which will transform the whole proposal but we need to make speedy decisions.
“We will probably be looking at a smaller scheme but there is nothing to prevent at a later stage a second phase.”