PLANS for a new Tesco store on a Territorial Army barracks site in Sheffield are on hold after a dispute about how much the supermarket giant is willing to pay for the site.
The Star understands Tesco had been willing to pay £14.67 million for the Manor Top site, which houses the TA’s 38 Signals Regiment plus Army and Air Cadets.
But the company has now made a cut-price offer of £8m.
In exchange, Tesco was offering empty land it owns off Penistone Road, opposite the Owls football ground, for a replacement barracks.
But the new TA facility would cost up to £15m and the MoD is unwilling to make up the shortfall if Tesco paid a reduced price for Manor Top.
About 200 jobs could be created if the Tesco was built.
Rysz Szumski, of Woodthorpe Development Trust, said: “If Tesco isn’t built there, a lot of people locally are going to be disappointed.
“There are not many jobs going and the store would make a big difference.
“But the barracks provides opportunities, particularly for young people through the cadet detachments and it needs a new home.
“Tesco should up its offer to make sure both the store and the barracks can be built.”
Coun Pat Midgley, Sheffield Council Labour member for Manor Castle, said: “We are anxious for the future of Manor Top centre that an agreement is reached. We want the best for the area.”
Manor Top TA barracks are managed by the Reserve Forces and Cadets Association.
An Association source said: “The problem is Tesco has substantially dropped the amount of money it is willing to pay for the site. “What it is offering wouldn’t be enough to cover the cost of building replacement barracks.
“With Tesco having reduced its offer so much, the MoD is asking ‘do we need to do this at all?’.”
A Tesco spokeswoman said: “We are still in negotiations.”
No plans will be submitted until an agreement is reached to buy the TA site.