Fears Tesco may pull out of major redevelopment the Streatham Hub have intensified, after it emerged the supermarket giant has the project “under review”.
In a report to be discussed by Lambeth Council’s cabinet next week, officers admit the viability of the scheme is at risk because of “the collapse of the residential sales market which was underpinning the development”.
The scheme, which would see a new council leisure centre, swimming pool, and ice rink built alongside a Tesco, 250 homes and associated parking, was given planning permission in 2003, but has suffered a string of delays.
Lib Dem Parliamentary Candidate for Streatham Chris Nicholson blamed “incompetence” and “dithering” by the Labour administration for the delays that gave the recession the chance to take its toll on the project.
He said: “When Labour were elected to run Lambeth in 2006 the deal was on the verge of being signed and the new ice rink and leisure centre were due to be open by 2010.”
The estimated delivery date prior to news the project was “under review” was already expected to be 2012.
The fact the project is “under review” has meant it is unclear if plans to begin work on the project later this year will start on time, if at all.
The council is due to have a high-level meeting with Tesco next month to discuss the project, in preparation for Tesco’s Board meeting at the end of August, and the council hopes to provide more information on the project in September.
A Lambeth Council spokesperson said: "Tesco has undergone significant departmental and staff restructuring and they have had to review their business plans and development portfolio for all of their schemes nationwde - not just the Streatham Hub project.”
“We remain firmly committed to improvements for the Streatham town centre area, including an ice rink, sports, leisure and community facilities, and we will continue to work with our partners to make this become a reality."
A Tesco spokesman said it was normal for the supermarket to review its plans.
He said: “We have to make sure we have a scheme which both we and Lambeth council are happy with.”
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