Tesco is to launch a legal challenge to the decision of the Department for Communities and Local Government (DCLG) to approve the Sunderland Arc’s planning application for the former Vaux brewery site in Sunderland.

The scheme was approved last month by the department who overturned a planning inspectors decision on March 28. An independent planning inspector recommended that the application should be refused prior to the government departments decision.

The former Vaux brewery in Sunderland has been at the centre of a quarrel between Tesco and the Sunderland Arc, the regeneration company, for the past six years.

Max Curtis, corporate affairs manager at Tesco, said: ‘We have taken this step reluctantly. As owners of the site, it is not in our interest to see it remain derelict and unused. We have long made it clear that we would prefer to work in partnership with Sunderland Arc. Working together there is the potential to develop a world-class proposal for this derelict land at no cost to the public purse. We hope that the planning situation can be resolved swiftly and that the site can be developed for the benefit of the city.’

The Vaux site was identified for retail use when Tesco acquired it, with the company recognising the long-term and wider regeneration benefits that a mixed-use development on the site would have for the city.

Curtis added: ‘In our proposals we have demonstrated our willingness to include the elements Sunderland Arc would like to see on the site. These include attractive public space, jobs, housing, offices cafes, bars and restaurants - as well as a Tesco store. A joint initiative would be better value for money and it would not require any public funds to implement.’

Tesco submitted an initial application in October 2002 for a scheme. A revised scheme was submitted in November 2004, which was appealed on grounds of non-determination in October 2005.

Sunderland Arc’s submitted plans in December 2002. These were called in by the government in February 2006 and a planning inspector recommended that planning permission for the Sunderland Arc’s proposals should be refused.