Tesco insisted it had considered the interests of the community
One of the supermarkets competing to set up in a Leicestershire town has had its proposal rejected.
A meeting of North West Leicestershire District Council heard applications from both Asda and Tesco to build stores in Coalville.
While the Asda bid was turned down, the council said it was "minded to approve" Tesco's plan. A third bid, backed by Sainsbury's, is yet to be considered.
The Secretary of State will decide if any decision should go to an inquiry.
Asda wanted to build a supermarket on a former factory site in Market Street near Memorial Square.
Tesco has identified a site at the crossroads between Whitwick Road and Hotel Street.
It will include a Motability unit and tourist information centre and is expected to create about 300 jobs.
'No brand war'
Tesco spokesman Eoin Dardis said: "We think it is good news for Coalville, it is another step along the journey so we are that bit closer.
"What we spend a lot of time doing now is making sure we get the community side of the business right, so we are trying to get do our bit as far as we possibly can and we are always open to offers and conversations with the local community."
But Martin Hughes, spokesman for the scheme to redevelop the Belvoir Shopping Centre alongside Sainsbury's, said they also offered a cinema, other types of shops and up to 1,000 jobs.
"We have never been in the business of a supermarket brand war here. The way we see it is that this is about the town centre's regeneration.
"Sainsbury's happens to be underpinning the proposals that we are putting forward but we are putting forward so much more - it's not just about a supermarket."
Mr Hughes said he expected their bid to be considered before Christmas.
Of three bids to build a supermarket in Coalville, Asda's plan has been rejected
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