Tesco’s plans to create 400 jobs in Glenrothes are hanging in the balance after crucial land deal talks broke down.
The CISWO club, which had planned to move from its North Street site to make way for the supermarket, has now announced it is staying put amid a row over the price of rates.
Tesco have confirmed they still want to come to Glenrothes, but said that without the club’s cooperation the entire project would be thrown into jeopardy.
The supermarket giant concluded a deal with Kingdom Centre owners AXA/CIS in April as part of the centre’s planned expansion. The site, the subject of a prolonged battle between Tesco and Sainsbury’s, is key to the regeneration of the town centre as it is hoped it will be a catalyst for investment.
A planning application was submitted by Tesco to Fife Council and land transactions are being discussed as part of the agreement.
Critical to the development is the demolition of New Glenrothes House, the YMCA and the CISWO, with the latter two to move to new premises.
The CISWO had been due to move to a former pub in the town centre called The Yard, but now says the rates are too high.
Club secretary David Nelson said they had been told they would not be receiving the 80% rates relief expected.
”We were told we would be no worse off if we moved but Fife Council is only offering us 60% relief. This means it will actually cost the club about £10,000 more a year than we pay now,” said Mr Nelson.
”Because of that we will not be relocating and we are calling a members meeting for Saturday November 12 to tell them we’re staying put.”
Gloria Coats, corporate affairs manager for Tesco, said: ”Tesco has been working directly with CIS/AXA and its agents to deliver proposals for a supermarket at North Street in Glenrothes, in order to regenerate the town centre and deliver this long-awaited facility.
”It is disappointing that CISWO has been unable to reach an agreement with Fife Council regarding its relocation, as without the clubs’ cooperation the development of any supermarket in Glenrothes town centre and the creation of hundreds of new jobs will be placed in jeopardy.
”We recently submitted our planning application to Fife Council and we remain dedicated to bringing this investment to Glenrothes, creating hundreds of local job opportunities and keeping people shopping in the town centre.
”We are hopeful that an agreement can be reached between CISWO and the council which will persuade the club to move forward with their relocation to the planned new facilities.”
Fife Council said it was committed to securing the redevelopment of Glenrothes town centre and urged CISWO to work with AXA/CIS to reach a financial settlement.
The council’s Keith Winter said: ”Fife Council has and will continue to support all parties during the process. However, we have a limited budget to award discretionary discounts on rates for premises occupied and used by local charities and we are disappointed that CISWO consider the award of the discretionary rates relief to be insufficient.
”Our budget to support all charitable organisations with these discounts is under greater pressure every year and has to be allocated to offer best value to the taxpayers of Fife. Each application, including CISWO’s, has been considered on its own merit and awards prioritised according to the contribution the organisation makes to the community plan and the council’s social justice targets.
”CISWO has been awarded 60% discretionary relief for 2011/2 the maximum possible in the circumstances reflecting the nature of its activities.”