Retailer unveils plan for Vaux site

A planning application for the development, which would include retail, leisure and residential buildings, was lodged by the supermarket chain with Sunderland City Council.

Tesco said the development, known as The Vaux, would create 1,000 jobs for the region.

However, the future of the site concerns Sunderland arc, the public body charged with the task of transforming derelict areas of the city.

The urban regeneration company wants to develop the 16-acre site into the £280m centrepiece of Sunderland's renaissance, potentially creating 3,500 jobs.

Sunderland arc submitted a planning application in December 2002.

Chief executive Tom Macartney said earlier this year that he would consider resigning if he lost the battle to develop the site.

The centrepiece of the supermarket's development would be a Tesco store.

Tesco said the scheme would represent its single biggest investment in the North-East.

However, Jonathon Breth-erton, deputy chief executive of Sunderland arc, said the planning framework did not allow for a retail development on the site.

Mr Bretherton said: "Just because you own a house doesn't mean you can just go ahead and build an extension, and the same principle applies here."

While he would make no comment about the supermarket's proposals, Mr Bretherton acknowledged the site's importance for the city.

He said: "This is the biggest site in Sunderland and it is extremely important for the future of the city.

"We want to work with Tesco on this, not against them."

He said that as a last resort, Sunderland arc would consider acquiring the land from the supermarket through a compulsory purchase order.

Tesco's development would be linked to the city centre by a public plaza with water features, seating, public art and landscaping.

Tesco spokesman Shaun Edgeley said the supermarket was still willing to talk to Sunderland arc.