Blackburn with Darwen Borough Council is seeking judicial review of communities secretary Eric Pickles' decision to over-rule a planning inspector and approve the massive Tithebarn town centre redevelopment in Preston.
The scheme department stores, shops, markets, offices, flats, catering space and a bus station and was found to be at odds with national planning guidance on transport (BB, December 2010).
The Lend Lease scheme also attracted opposition from local authorities in Blackburn and Blackpool who fear it would be so large it would hurt their town centres.
Blackburn is releasing no details of its legal action but BB understands the Borough believes there were procedural improprieties in Mr Pickles' decision.
It believes he gave insufficient weight to the damaging effects on other towns.
Preston City Council reacted with fury to the move.
"It means more expense to the taxpayers of Blackburn and yet more delays and uncertainty for Preston," said leader Ken Hudson.
"How Blackburn can justify spending public money on another unnecessary legal challenge to Tithebarn at a time when they are making job cuts, is quite simply beyond us and no doubt most reasonable people."
Blackburn, however, evidently believes reasonable people might also foresee further damage to its own town centre which it believes would be jeopardized by a development the size of Tithebarn.
The scheme would involve comprehensive redevelopment, part demolition of a listed market, 150,000m² of retail and leisure development including two department stores, 400 lfats, a cinema, 20 catering outlets and a new bus station.
There is also a dispute over evidence to the public inquiry on transport.
