Megashed builder ends Tesco deal

Tesco said it "remained committed" to the project

Plans for a giant Tesco distribution centre in Hampshire are further in doubt after the developer terminated its contract with the supermarket.

Developer Goodman wants to construct the so-called "megashed", which would cover 23 acres (93,000 sq m) at the former Andover Airfield.

But the developer could not reach an agreement with Tesco over stringent environmental controls.

Planning had already been rejected by Test Valley Borough Council.

However, it has been referred to the council's planning control committee for a further decision next month.

'Major investment'

Test Valley Borough Council confirmed Goodman had not withdrawn its planning application for the Andover site and the 1 December planning meeting would still go ahead.

A spokesman for Goodman said the decision to end its agreement with Tesco "further demonstrates Goodman's commitment to the routeing agreement and restrictions, which are considered necessary by Test Valley Borough Council to protect local roads".

STOP's position remains the same. We are opposed to a megashed - anybody's megashed Rhonda Smith, Stop Alliance

"We are absolutely committed to delivering a high quality business park on our site and trust that the council will soon be able to grant planning permission," he said.

"Tesco or any other perspective tenant that seeks to come to our site will still have the opportunity to take up occupation if they are willing to comply with the planning conditions."

In a letter to councillors, Juliette Bishop, Tesco's corporate affairs manager (distribution), said the company "remains committed to making a major investment in Andover".

But Tesco, which has already set up a recruitment website for prospective employees at the site, could not agree with the "onerous" section 106 planning controls.

These included not allowing employees living within 2km (1.2 miles) to use their car to go to work, a fining system for too many HGV movements, a curfew on HGV reversing alarms and the barring of the A338 for Swindon store deliveries.

Campaigners against the proposal packed a council decision meeting in September saying the plan would damage the environment and clog up the roads.

But those in favour of the scheme said it would create 900 jobs and see a £120m investment in Andover's economy.

Rhonda Smith, of the Stop Alliance, said: "STOP's opposition to Goodman's planning application development has never been against Tesco themselves, but to the siting of a megashed on the airfield site, close to an already overloaded A303.

"STOP's position remains the same. We are opposed to a megashed - anybody's megashed - on the airfield.

"Andover needs and deserves the mixed business park promised in the Andover Vision and the local plan."