Leeds-based property developer Montpellier Estates is taking Leeds City Council to the High Court over the council’s decision to develop a 12,500-seat arena on council-owned land.

In November last year the council chose the 5-acre Claypit Lane site, which it part owns with Leeds Metropolitan University, as the site for the new stadium.

Montpellier’s site on Sweet Street in the Holbeck area of the city, and a proposal by developer GMI in relation to a site at Elland Road, had been thought to be the only two options on a short list before the decision to build the arena on the council’s land was taken.

Jan Fletcher, Montpellier’s chairman, said: ‘It is with great regret, that Leeds City Council have left us with no alternative, other than to take this action.

‘No-one could be more passionate about the success of both Leeds and Yorkshire than I am. I have fought tirelessly to support Leeds in becoming an internationally competitive city and will continue to do so.’

In a statement Montpellier said: ‘Montpellier Estates can confirm that it has issued proceedings against Leeds City Council in connection with the competition to award a contract to develop the Leeds Arena.

‘Montpellier has issued the proceedings to obtain information from Leeds City Council that Montpellier is entitled to, has requested and that Leeds City Council has refused to disclose.’

At the time Leeds City Council said it had made the decision because the two options were not affordable.