Talks over brewery site dispute

Artist's impression of development on Vaux site

Intensive talks are taking place to end a long-running row over the development of a former brewery site in Sunderland, according to a regeneration firm.

Tesco bought the former Vaux site in 2001, but it has seen a number of attempts to build a superstore blocked.

Urban regeneration company Sunderland Arc, says the supermarket giant is now looking at building a store on an alternative site north of the city.

Arc wants offices, homes and hotels on the 15-acre city centre site.

The brewery closed 10 years ago and the land has been empty since.

We hope to have some good news for the people of Sunderland some time in the coming months Tesco spokesman

David Walker, chief executive of Sunderland Arc, said: "Contrary to popular belief we have been talking to Tesco for sometime and quite intensively.

"I think we are coming up with a great compromise.

"Over the past 18 months Tesco have been getting a position on Sunderland retail park, north of the river - it would be one of the biggest Tesco supermarkets in the UK.

"We will hopefully be able to realise our aspirations for a business district and the creation of 3,000 plus jobs right in the heart of the city centre."

He said the firm was in negotiations for a development partner and it was hoping to make an announcement in the autumn, with a planning application possibly following in spring 2010.

A Tesco spokesman said: "We are in discussions with the council and its partners to find a mutually acceptable way forward.

"We hope to have some good news for the people of Sunderland some time in the coming months."