Councillors are to learn later whether a decision to accept a stake in a holiday village in Pembrokeshire for a £2m loan will have to be reconsidered.
A council has taken a stake in a holiday village in Pembrokeshire in place of a £1m loan it gave the company behind the project.
If four members of the council question the deal, agreed with the £110m Bluestone eco-resort, it will have to go before a special scrutiny committee.
The local authority approved the deal, agreed with the £110m Bluestone eco-resort, at a meeting.
Bluestone said it was "vibrant" and entering the second phase of its development and needs more investment.
Bluestone had said it was entering the second phase of its development and needed more investment.
But some businesses oppose the deal, claiming public money is being risked.
But some businesses opposed the deal and claimed public money was being risked.
The Pembrokeshire eco-village opened in July 2008 after a long planning and legal battle.
The Pembrokeshire eco-village opened in July 2008 after a long planning and legal battle.
Last month, a £10m deal was signed with Royal Bank of Scotland and Finance Wales towards a second phase of the complex near Narberth.
Last month, a £10m deal was signed with Royal Bank of Scotland and Finance Wales towards a second phase of the complex near Narberth.
'Cavalier attitude'
The council's cabinet has agreed to convert their original loan into a 3% stake in the company, which is now estimated to be worth more than £60m.
David Edwards, former Labour leader on the council, is among those who believe the council is risking public money.
Mr Edwards, who is now a community councillor, said: "Lots of the councillors, especially those in the opposition groups are extremely concerned that this kind of cavalier attitude to the use of public money is inherent in Pembrokeshire.
"We have small businesses in small towns in Pembrokeshire who are having two, three and four hundred per cent hikes in their business rates.
"They are struggling to pay those rates to the county council and then the county council has decided to invest their money in a private risky venture."
The water park is in the first phase of the development
The water park is in the first phase of the development
However, councillors argue that this is a good deal and the council share in Bluestone will increase in value.
The council's cabinet had agreed to convert their original loan into a 3% stake in the company, which is now estimated to be worth more than £60m.
Angela Burns, Conservative assembly member for Carmarthen West and South Pembrokeshire, has mixed feelings about the deal.
But David Edwards, former Labour leader on the council, is among those who believe the council is risking public money.
She said: "I would guess, having had a good look through Companies House [records], that what they have done is that they've taken this action in order to ensure they have the opportunity to recover their monies as time goes by.
Mr Edwards, who is now a community councillor, said: "Lots of the councillors, especially those in the opposition groups are extremely concerned that this kind of cavalier attitude to the use of public money is inherent in Pembrokeshire.
"So in many ways its very very sensible. What we need to know is that's really why its happening. And I'd like to understand why all these other councillors are running around saying that this is a dreadful dreadful thing and what's going on.
However, councillors argue that it is a good deal and the council share in Bluestone will increase in value.
"Because they were obviously party to that meeting.
Vibrant company
"I wasn't, so why are they uncomfortable because I can see some of the business logic behind it and I just think for the sake of everybody we need clarity."
The 960-bed resort achieved five-star status from Visit Wales this summer only nine months after opening. In its first year it attracted about 40,000 visitors.
Chief executive William McNamara said: "Bluestone is a young and vibrant company with significant growth plans. Just over a year since we launched the business we are now entering the second phase of our growth objectives which required additional investment.
"To achieve this we have restructured the business to make it stronger and this has been backed by two major commercial funders.
"This investment took place last month and all staff, suppliers and guests have been kept informed about these developments."
Pembrokeshire council leader John Davies has said it was a sign of "confidence in the company's future".
He said it provided security for the continued development of Bluestone but also enhances the prospects of job creation both at the holiday complex and for local suppliers.
Mr Davies said the meeting to discuss the confidential report had been open to all councillors.
