Almost 500 retail jobs will be created in Dundee after Tesco lost a two-year legal fight to block a bid by rival Asda to build a new supermarket in the city.
The long-running legal wrangling over the proposed new store finally came to an end at the UK’s Supreme Court on Wednesday when an appeal by Tesco against Dundee City Council’s decision to grant planning approval for the development was dismissed.
Tesco, which has a supermarket of its own less than a mile away from the Asda site at the former NCR factory in Wester Gourdie, said it was ”disappointed” but relieved the case had now been resolved.
Asda said it was delighted by the outcome and would now press ahead with the development. The firm said it expected the 52,000 sq ft store to open next year.
The new outlet will also provide an immediate shot in the arm to the building industry, with around 200 jobs being created during the construction phase of the store and associated buildings and the roads upgrade required to service the site.
Asda and development company Macdonald Estates first received outline permission for the store from Dundee City Council in January 2010. Tesco sought a judicial review of the decision but this was dismissed by the Court of Session and a further appeal was also knocked back.
In the interim Asda lodged a second planning application with the city council, seeking full approval for the development. The application was again successful but Tesco again initiated legal proceedings.
A panel of five judges at the Supreme Court have now dismissed Tesco’s final appeal.
A spokesman for Asda said: ”The decision by the Supreme Court is absolutely fantastic news for Asda and we are relieved to finally be able to get to work on developing the new store.
”Despite over two years of setbacks and delays, we have remained fully committed to our development and we’re excited to be able to proceed at last. We will now get to work and hope to be able to open the store in 2013.”
Kevin Robertson, managing director of Macdonald Estates, said: ”Having first embarked on this project in 2007 we are now thrilled to finally be able to proceed with the plans and bring the regeneration of this site to life. We know that many people in the area have been crying out for the new jobs that this development will bring and have, like us, been frustrated with the delays we have encountered.”
A Tesco spokesman said: ”We don’t object to more supermarket choice that is good for Dundee shoppers. We were just concerned about this specific location and thought there were better places in Dundee for a new supermarket. It’s disappointing but we are pleased it is now resolved.”
Lochee councillor Bob Duncan said: ”This is absolutely fantastic news for the whole of Dundee not only because the new store is expected to create around 480 jobs but it will also generate revenue through the construction period. This is a very positive step.”