By Julian Whittle

Last updated at 11:59, Wednesday, 10 March 2010

Tesco has no immediate plans to start building a supermarket in Viaduct Estate, Carlisle.

The chain has planning permission for a 40,000sq ft store but had been in talks with the city council to swap the plot for land at Morton.

The council wanted the Viaduct Estate site to provide more space for the University of Cumbria.

But the deal collapsed last month when the university shelved its scheme for a new campus.

Tesco spokesman Doug Wilson said the company would not rush into any decision.

It could develop Viaduct Estate or bid for the land at Morton, which will now be offered on the open market.

Mr Wilson said: “We are reviewing our options in Carlisle. We do have a planning consent on the Viaduct site and this will be one of the options we are considering.”

Tesco won that planning permission following a public inquiry in 2007.

The same inquiry rejected proposals for a 70,000sq ft Tesco store on stilts in Viaduct Estate, also known as Caldew Riverside, with parking underneath.

Hazel Blears, the then Environment Secretary, ruled that its sheer size would be an eyesore in a sensitive location close to the city walls and cathedral.

Meanwhile, the city council is applying for outline planning consent for its land off Wigton Road at Morton before offering it for sale.

The proposals are for an 88,000sq ft food store with parking for 606 cars.

This is likely to be more attractive to Tesco than a 40,000sq ft store in Viaduct Estate.

But it may have to fight off bids from other supermarket chains.

And Tesco could fall foul of a new ‘competition test’ in government planning policy because it already has two stores in Carlisle.

Nationally, Tesco has 31 per cent of the grocery market – almost twice as much as its nearest competitor Asda – and has more stores than Asda, Morrison’s and Sainsbury’s put together.

The decision to offer the Morton land on the open market, rather than only to Tesco, will be confirmed when the city council’s executive meets next Monday.

A report from Chris Hardman, assistant director (economic development) says: “Without the university relocating to Caldew Riverside the need for the Tesco site is now not clear.

“There is currently no scheme to develop the whole of the Riverside and.... there is no prospect of comprehensive development.

“The implication of this change is that it is no longer necessary for the council’s site at Morton to be part of a solus agreement [with Tesco].

“The land at Morton can now therefore be considered on the open market.”

First published at 11:25, Wednesday, 10 March 2010
Published by http://www.newsandstar.co.uk