Plans to redevelop a Lincolnshire town will go ahead despite a major partner pulling out, councillors said.
Boston College had planned to build a new base on West Street but withdrew after deciding there was not enough room for both a college and shops.
The West Street area is being regenerated and will feature new shopping and leisure facilities.
Boston Borough Council said it was disappointed but would look at other ways to meet the college's needs.
Boston College's principal, Sue Daley, said: "It is with regret the college has come to this decision.
"As the proposals have evolved, it has become clear that the site would not allow for both commercial and educational use.
"This is a mutual decision and now Boston College will be going back to the drawing board to consider the options available."
Leader of Boston Borough Council, Richard Austin, said: "The West Street redevelopment proposals will be coming forward to be considered at the planning stage, without the college's involvement.
"This is exactly what this investigation phase was all about.
"In this instance it has not been possible to reconcile shopping and educational needs but it was the right approach to take."