A WRANGLE over a small strip of land which stalled a scheme to build a £15m superstore, finally ended yesterday.

The "amicable conclusion" between Safeway and Teesdale District Council ends a two-year stalemate over the vital piece of land, measuring only 640 sq ft.

The firm confirmed plans to redevelop the current Safeway store, in Barnard Castle, County Durham, in 1998. The company said the new store, with a 15,000 sq ft sales area, would open the following autumn.

But work stopped in the summer of 1999, when the initial £80,000 valuation for the council-owned land adjoining the main Galgate car park was almost doubled to £150,000.

Both sides have faced continued public criticism over their handling of the dispute.

Safeway accused the council of putting the entire project - and an estimated 150 jobs - at risk.

The council had argued that it was duty bound to get the best offer under Government guidelines, and that no formal agreement had been made.

Offers from other companies were received for the land.

In October last year, the council accepted a rival bid of £150,000 from a Midland consultancy firm. This was later withdrawn amid rumours that Safeway had raised its offer to £160,000.

However, both sides, which have since been embroiled in further legal negotiations, have never confirmed this figure.

At one point, councillors accused council chiefs of spying, after it was revealed that a council employee was ordered to tape a public meeting on the issue.

Last night, Safeway spokesman Peter Sitch confirmed that it would now proceed with the redevelopment scheme.

"Our initial thoughts are that it is unlikely that construction would start until the next financial year with completion in 2003," he said

Teesdale businessman Brent Stephenson said: "It's about time they have come to agreement.

"We must now ensure that the store is built, and built quickly.