HARINGEY's most recognised landmark will no longer be sold off to the highest bidder.

Alexandra Palace trustees, made up of Haringey councillors, scrapped plans of selling the building to one single developer at a meeting of the Alexandra Palace and Park Board last night.

The decision follows a failed and drawn-out search to find a buyer for Ally Pally — as it's affectionately known — which has cost Haringey taxpayers millions of pounds.

Owner Haringey Council is financially responsible for the palace, a registered charity, and spends up to £2million each year to maintain the venue.

The board has now agreed to pursue a new approach which could include a number of developers investing in the debt-ridden site currently managed by Alexandra Palace Trading Limited.

Councillor Pat Egan, chair of the board of trustees, said the main priority was to get the governance of the palace "fit for purpose" before a masterplan regarding Ally Pally's future could be agreed.

He said: "I know it's a hackneyed phrase but it is still very early days.

"We are trying to do things better this time and will be holding public exhibitions to try and work with the community to establish the best way to go forward. Once we have agreed on governance arrangements we can then set about agreeing upon a masterplan."

A preliminary decision on governance will be agreed in February but could see independent trustees with expertise in leisure, recreation and business replace councillors on the board.

Haringey's Liberal Democrats and Hornsey and Wood Green MP Lynne Featherstone welcomed the decision and congratulated the trustees for "finally coming to their senses".

In 2007, a 125-year lease to development company Firoka Ltd, owned by business mogul Firoz Kassam, was quashed by a High Court judge who ruled that the consultation process had been flawed.

The legal action was brought forward by Save Ally Pally campaigners who have been lobbying the trustees to look at better ways to safeguard the attraction's future.

The decision cost Haringey taxpayers £1.5 million as the council leaders failed to set aside the funds to cover the cost of maintaining the palace for another year.

Councillor Robert Gorrie, Haringey Lib Dem leader, said: "Finally we are seeing some much overdue sense prevailing. Local taxpayers lost millions of pounds when the Labour council decided to flog it off without regard for the consequences or the views of local residents.

"That expensive fiasco highlighted the virtual collapse of effective governance of the palace and has prompted a number of long overdue changes in personnel and approach."

He added: "I am glad that there is recognition of the flaws in the previous approach but a successful and sustainable future for the palace will only come with independence from the council and the leadership of independent trustees."

In response to the suggestion, Mr Egan said: "The reality is when public money is involved there has to be accountability and so councillors must be involved until the palace is in a position to support itself.

"There is a very positive feeling at the moment. Things are falling into place slowly but surely."

Last year Firoz Kassam announced his intentions to sue Haringey Council after renewed negotiations to purchase Ally Pally turned sour.

Mr Kassam had hoped to turn the site into the ultimate leisure complex featuring a hotel, restaurants, bars and a casino.