Construction was expected to start in the spring of next year
Plans for a £135m redevelopment of Weymouth Pavilion and ferry terminal have been thrown into doubt after the developers said it was "under review".
The scheme, which is expected to create 400 jobs, includes a hotel, a new ferry terminal building, refurbished theatre, marina berths, and new flats.
Councillors voiced concerns at a meeting this week and sought clarification from Howard Holdings.
The developer said all its projects in Weymouth were being looked at.
It is hoped the development will be ready in time for the 2012 Olympic games when the sailing events will be held in Weymouth and Portland.
But a council spokesman said that even if the proposal is not finished it would not impact on the games.
Weymouth & Portland Borough Council said: "We have asked Howard Holdings if they are still in a position to proceed with the development of the pavilion and ferry terminal site.
"Given the uncertainty created by the economic climate, we feel we need to establish exactly where we are in order that we can agree the right course of action."
The council said it had to "protect the assets of its residents".
Jeff Sparrow from Howard Holdings, said: "Similar to the rest of the country, projects in Weymouth are being reviewed.
"We are in constant contact with the council."
Earlier plans to develop Weymouth seafront were revised to make the scheme more economically viable.
Opponents, including the Our Weymouth group, say the scheme will spoil views and scare off tourists.