Developers are seeking talks with planners in a bid to revive plans for a £20m retail scheme in Gateshead.
Fintry Estates and Hargreaves had planned to transform land off Albany Road with a new discount supermarket, shops, a gym, and a pub amongst other additions, creating more than 260 jobs.
The proposals, however, were knocked back by Gateshead Council over concerns for its impact on the nearby town centre.
Now the development partners are considering appealing against the decision, saying they are looking to engage in ‘constructive dialogue’ with Gateshead Council over potential future uses for the 3.3-hectare site close to the A184 Felling Bypass.
Their joint venture’s plans include a discount food-store, additional retail units, garden centre, micro-brewery/pub, drive-thru coffee shop and a gym - and would create 138 jobs, as well as 125 jobs during construction.
But the council’s planning committee rejected the plans last week after hearing arguments, including those from supermarket giant Tesco, that the scheme could potentially harm town centre retailers.
Duncan McEwan of Fintry Estates said: “While we are disappointed with the decision and we are reviewing our options, we still believe that this is the only viable development option for this site, which is an eyesore, and has lain generally vacant for over 15 years.
“The proposals received widespread support from the North East England Chamber of Commerce, Gateshead College and Ian Mearns MP, and represent a once in a generation opportunity to revitalise a rundown, eyesore site, which is effectively not viable for many alternative uses.
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“We feel undue weight was attached to the Tesco argument of potential harm to town centre retailers, which has been quantified at being just 2.5% - the equivalent of a wet Saturday afternoon.”
Mr McEwan said that, as a result of officers’ concerns over the potential impact to the town’s existing retailers, the developers agreed to a ‘no poaching’ clause, which would prevent town centre operators relocating to the site.
The site had been used as railway sidings before falling into disrepair. The Dynamix skate park was subsequently created on the land, although this is currently closed.
The developers said a public consultation event organised by planning firm Lichfields secured widespread public support for the scheme.
The development has a value of £20m including construction and land purchase value and the developers said it would deliver a GVA boost to the local economy of £16m as well as an estimated £500,000 pa in business rates income.
Mr McEwan added: “While an appeal remains an option, it is not our preference – we would much prefer to work with the council to secure the redevelopment of the site and the economic benefits it could deliver.”