The chief executive of Liverpool City Council has given evidence at an inquiry into the cancellation of the city's so-called "Fourth Grace".
Fallen from Grace: The Cloud was scrapped
Sir David Henshaw spent more than two hours explaining why Will Alsop's Cloud building was scrapped.
He blamed rising costs, major changes to the design and delays which may have meant European funding would be lost.
The waterfront building was set to be the centrepiece of the city's year as Culture Capital in 2008.
Two inquiries have been set up by the council's regeneration and leisure select committees.
They are to publish two separate reports by the end of September.
Sir David appeared before the leisure and culture select committee's inquiry.
Plans for The Cloud ran into difficulty when additional residential towers proposed to be built alongside it had height restrictions imposed.
Costs were also claimed to have risen from £228m to £324m.
New plans for the site are to be proposed and could include a museum, theatre, public open spaces and a canal link.