Work on Saltdean Lido has been halted after a row broke out between the council and the community group restoring the site.
A new sub-station is needed to provide electricity to the site. Brighton and Hove council is willing to loan £10,000 - a fraction of what the group needs.
The council said the project was awarded on the basis that no additional council funding was needed.
The Heritage Lottery Fund has awarded a grant of £4.7m to the project to restore the derelict 1930s Saltdean Lido in Sussex.
The money, alongside other grants and donations from other groups and individuals, will be used to help restore and reopen the lido. The Saltdean Lido Community Interest Company said it still has to raise another two million pounds to fund the project.
Coastal towns around the region will soon be benefitting from millions of pounds of government investment. One of the sites earmarked for restoration is Saltdean Lido near Brighton - five years since the start of a campaign to get it back in use. Andy Dickenson reports.
Dramatic video has surfaced of two brothers from Sussex fighting in Syria. Their younger brother, eighteen-year-old Abdullah Deghayes, was shot dead six weeks ago in a street battle. It is believed he was fighting alongside a group linked to al-Qaeda.
The men's father says they went to Syria to fight a "dictator" and describes his youngest son as a "martyr". He is pleading with his surviving sons to come home. But if they do, they face the possibility of being arrested.
Saltdean Lido in Brighton has opened its doors for the first time in three years today. The country's only Grade II listed lido has been saved by campaigners after developers planned to turn it into it flats. It will now undergo a £5m refurbishment. Campaign director Rebecca Crook spoke to Meridian.
Saltdean Lido in Brighton is opening its doors for the very first time in years this weekend.
People will get the chance to view the only Grade 2 listed lido in the country before it is closed for a £5 million refurbishment.
The refurbishment will see the lido closed fully for 12-18 months while work takes place.
The site will re-open in 2016 and is hoped to be restored back to its former glory with heated water for the pool, new meeting room space, an all year round cafe and bar as well as a new gym and outdoor recreation area, including beach volleyball.
Saltdean Lido has been given £130,000 from Brighton and Hove City Council for urgent repairs. Experts say so much work is needed, it might not reopen in time for next summer. Other non-essential repairs could cost hundreds of thousands of pounds.
Residents who fought for two years to stop a businessman building homes on the site of the Saltdean Lido in Brighton are now beginning their campaign to raise three million pounds to take on the building themselves.
The lease for the 1930s Lido was handed back to Brighton and Hove City Council yesterday by former leaseholder Dennis Audley. Campaigners are overjoyed.
Campaigners hoping to stop a developer from building apartments on Saltdean Lido have held a fundraising day to raise support for their campaign. The hope to force Brighton and Hove Council to negotiate with the leaseholder so that they can purchase the historic site.