Centros has decided not to be represented at the public inquiry into its controversial Castle View development in Lancaster but it insists it remains committed to its scheme despite new proposals from opponents for an alternative scheme.
The scheme for extensive redevelopment of the city's historic ha Canal Corridor was approved by Lancaster City Council in the autumn but has attracted fierce opposition from English Heritage and conservationists.
It became the first major call-in in the region for several years and now SAVE Britain's Heritage has produced its own plan for the area.
But while Centros will not attend the inquiry, it is hoping that the Council will win the day for it.
It complained its retail and mixed use development is being hindered by bureaucracy.
"Having been lobbied by English Heritage and local minority objector group It's Our City, the Government has effectively valued a handful of mediocre unlisted buildings above the delivery of a major regeneration scheme and a thousand new jobs," said Centros chief executive Richard Wise.
"This is a complete contradiction of its policies and all the economic initiatives aimed at pulling the country out of recession."
But SAVE has commissioned its own scheme designed by architect Richard Griffiths.
It says the Centros scheme would demolish 30 buildings, 18 of them in a conservation area, and obliterate the medieval street pattern and says the situation after Centros' decision is now chaotic and embarrassing.
"‘In the current financial climate there is little appetite for large, brash, retail schemes and Centros's reluctance to push the scheme forward has confirmed this," said secretary William Palin.
"If the council is serious about long-term regeneration then it should be advocating a conservation-led scheme which will create a real place and dovetail with the rest of this beautiful, historic city."
