A LONG-running dispute between a supermarket chain and a local authority has finally drawn to a conclusion with the words: "The money changed hands and was received by the council this morning".

Mr Charles Anderson, chief executive of Teesdale District Council, made the statement at a meeting of the authority on Wednesday. But although the deal is now finalised, it could be up to two years before the development is included in the Safeway construction programme.

It brings to an end a dispute between the two parties about the value of a piece of land that Safeway wished to buy as part of the development of a new £15m store in Barnard Castle, which became a ransom strip after surrounding plots were sold.

Safeway had originally offered the council £80,000, before the price was raised as the authority endeavoured to get the highest sum under the government's best value scheme.

The dispute saw work at the site stop in June 1999, as both sides tried to find the middle ground amid criticism from some quarters, including businessman Mr Brent Stephenson, who organised public meetings in the town in an effort to bring the issue into the open.

On hearing the deal had been struck, Mr Stephenson said it was about time, but it should have been completed two years ago.

"The devil is in the detail, and the council has got a worse deal now that it would have got then," he added. "I have seen more documents than elected members of the council have been allowed to see by their officers and that is an outrageous situation. We must now ensure that the store is built and built quickly."

Safeway spokesman Mr Peter Sitch said: "This long period of uncertainty over the development of a new store has been unsettling for everyone, including customers, other shopkeepers, the council and Safeway.

"Resolving the impasse has been very, very welcome. Certainly Barnard Castle needs a new store in the town centre and we can all be glad that this can now be achieved, albeit with a slight delay.

"Now that we have finalised an agreement, we can programme the development into our construction programme. Our initial thoughts are that it is unlikely that construction would start until the next financial year, with completion in 2003."

He confirmed that in addition to the £160,000 paid for the land, Safeway would also be contributing financially, as part of the building works, towards additional car parking facilities, improved lighting and signage, resurfacing the central car park and installing devices to prevent the removal of trolleys from the car park.

But the news angered Coun John Watson, who entered into a slanging match with chairman Coun Newton Wood regarding his right to speak about unresolved traffic problems and residents' parking in the area.

Coun John Armstrong described his outburst as disgusting and not part of the agenda, while Coun Wood warned him if it happened again he would not allow him to speak.

Coun Armstrong added that the council had got an amicable conclusion to the Safeway issue and it was commendable that they had got a solution that was very satisfactory.

Coun Wood, no stranger to controversy for allegedly releasing exempt material to the Press, said afterwards: "I think my intervention speeded the whole thing up."