Larne Borough Council's Chief Executive Geraldine McGahey has "held up her hands" to allegations of a "flawed process".
Speaking on BBC Radio Ulster this morning she admitted to faults but insisted that the organisation was being open and honest about the mistakes, and had not, as reported, been forced into revealing the problems by a Freedom of Information submission.
Ms McGahey said the finding clearly identified flaws in the process and they needed to start again.
She was commenting after the Northern Ireland Ombudsman Tom Frawley said the council's chosen developer should have his contract rescinded.
He was selected to develop publicly owned land in Glenarm, but Mr Frawley found that the selection process was flawed at every stage.
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However, the council has now unanimously accepted the ombudsman's findings.
Ms Frawley continued: "This affords us the opportunity to get it right, to work in partnership with the community in Glenarm, the wider population in the Borough of Larne and all of the stakeholders," she said.
The storm initially 'broke' after former independent councillor John Anderson brought the matter into the public domain with a Freedom of Information request.
"The Ombudsman's conclusion was significant maladministration, that's just about as bad a report as a council can get," he said.
He said at the beginning of the process the newspaper advert to attract developers was too small and that the timeframe to apply too short.
He felt it gave unfair advantage to one developer who had already approached the former acting chief executive of the council about the land.
The ombudsman also thought that none of the three developers who responded to the advertisement should have been short listed, yet all were.
One developer later withdrew his application because of a decision to allow those bidding to have direct contact with those choosing the successful company.
The ombudsman said this was at best "ill-advised and inappropriate" and at worst "highly irregular".
The ombudsman also said the councillors who later heard the presentations did not have the experience or training to make the decision. He has now advised the council to rescind the contract awarded.
The ombudsman has also recommended that the council should apologise to the unsuccessful developer and refund the legal costs he has incurred in making the complaint.
(BMcC)
