Calls have been made for Sheffield Council to ensure developers are not put off investing in the city after Hammerson was axed from the Sevenstone development.
Opposition councillors have warned that the council’s reputation is at stake.
The council ended its development agreement with property company Hammerson after the company refused to give a date to start work on the £400 million retail project between The Moor and Barker’s Pool.
Coun Shaffaq Mohammed, leader of the main Liberal Democrat opposition group, said: “We want a new vision for the retail offer of the city.
“We cannot allow Sheffield to gain a reputation as a no-go area for investors.”
Former Sheffield Council leader Paul Scriven highlighted stories in the construction press claiming Hammerson had dropped Sheffield - denied by the council.
He said: “That would be very bad for the city’s reputation.”
Deputy Prime Minister and Hallam MP Nick Clegg added: “It is vital that a concerted effort is made to bring in developers who are serious about moving things forward quickly.”
But Sheffield Green Party chairman Jon Ashe said: “The council shouldn’t waste more time on another grandiose scheme, which at best will make profits for multinational companies.”
Coun Leigh Bramall, Sheffield Council cabinet member for business, skills and development, said: “We decided to cease working with Hammerson because they could not commit to definite timescales.
“Sheffield does not have a reputation as a no-go area for investors, as you can see with schemes like the £40m Moor redevelopment.”