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Page last updated at 12:41 GMT, Friday, 9 January 2009

Community enters supermarket fray

Tesco and Sainsbury logos
Tesco has been named as preferred bidder for the Kelso site

A community meeting has been held to discuss its response to a wrangle between two supermarket firms over a small town in the Scottish Borders.

Both Sainsbury's and Tesco had plans for Pinnaclehill in Kelso - with the latter emerging as preferred bidder.

However, there are concerns that Sainsbury's has binding agreements to buy adjoining land which has prompted fears of a lengthy legal dispute.

Community representatives are hoping to find a way forward for the area.

The Borders town has found itself at the centre of a long-running tussle between the two shopping giants.

Sainsbury's thought it had struck a winning blow when Scottish Borders Council named Pinnaclehill as its preferred development site.

Tesco had put forward proposals at a different location in the town.

Binding agreements

However, the council owns the Pinnaclehill land and put it up for sale on the open market.

It recently announced that - on the grounds of finance, deliverability and benefit to Kelso - Tesco had come out on top.

The situation has been complicated by the fact that Sainsbury's has agreements to buy land adjoining Pinnaclehill.

It could result in both supermarket rivals owning different parts of the site and lead to a potential development stalemate.

Kelso Provost Margaret Riddell hosted a meeting in the town on Thursday to discuss the situation.

The community council, chamber of trade, Kelso Amenity Society and representatives of surrounding villages were also involved in the talks.

A public meeting is now planned in the town on 26 January.

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