Rival developers have called for a major Perth housing plan to be scrapped.
A new 270-property estate could breathe new life into the eyesore old Perth Mart site on the edge of the city.
The proposal, which would clear up a notorious 30-acre dumping ground, has won crucial support from council planning chiefs and could be approved next week.
However, it has emerged that the team behind a neighbouring housing project has lodged a formal objection against the bid, claiming the site would be better used for retail.
The old mart plot was once earmarked for a new Sainsbury’s supermarket, but the bid collapsed after a legal spat with rival Tesco.
The latest housing plan was tabled last year by the administrators of Glasgow-based consortium Perth City West LLP.
The proposal has now been backed by Perth and Kinross Council planning officers, who have recommended approval at the next meeting of the development management committee on Wednesday.
However, the owners of the neighbouring site – who recently unveiled their own plans for more than 500 new homes – are trying to block the old mart plan.
In a letter of objection, landowners A Ritchie and Sons and M&SM Bullough raised concerns about the accuracy of a submitted land ownership certificate and the way a public consultation was carried out.
John Wright, planning and development surveyor for agents Strutt and Parker said the site already had consent for a supermarket. “Whilst we acknowledge that (the site) is no longer allocated for this employment purpose, we believe the applicants should have to robustly justify the need for residential development,” he said.
“We believe that with the scale of residential development being brought forward in the locality, there would be merit in retaining the site for supermarket uses, which would enable residents in adjacent developments to access a supermarket without having to cross the A9 and unnecessarily increasing traffic movements in this area.”
Although plans by Perth City West to build a supermarket on the site were officially extended last year, councillors were told at the time that the plan was unlikely to happen.
In a report to councillors, interim head of planning Nick Brian said the housing proposals should be approved, subject to conditions and a legal agreement.
He said the new homes would be a boost for the area. “The development of up to 270 dwellings will provide a significant increase in available expenditure for the economy of Perth in particular and further afield,” he said. “This expenditure should have a significant positive impact on Perth City Centre, nearby commercial centres and Inveralmond Industrial Estate with its many ancillary retail facilities.”
If passed, it will be the latest in a series of major housing projects under way in Perth.
Springfield Properties has already started work on its £1 billion development at Bertha Park, while the Pilkington Trust won its fight to build 1,300 houses at Almond Valley.