The arc launched its search for a development partner for the Vaux site earlier this month – even though Tesco still owns the land.

Now the supermarket chain has unexpectedly announced it is putting itself forward as the ideal choice.

Corporate affairs manager Michael Kissman, said: "We own the Vaux site and are the only developer in a position to deliver the scheme.

"Tesco has always said it will work with Sunderland arc on the Vaux site and we have already undertaken a significant amount of work on developing a viable scheme.

"No other developer can match our knowledge and experience of the site, and as we own it we are also the only company that can implement the project.

"Tesco is committed to making a significant investment into Sunderland and to the regeneration of the Vaux site.

"We look forward to working with Sunderland arc to deliver this important project for the city."

A partnership between the arc and Tesco would speed up work on the site substantially if it removed the need for the arc to secure a compulsory purchase order on the site.

Tesco's plans include a large supermarket, but with the city council's urban development plan banning large scale retail use on the site, pushing ahead would almost certainly require a public inquiry.

Tesco is the preferred operator for a supermarket which is included in plans to redevelop the Roker Retail Park - just the other side of Wearmouth Bridge - and may be more willing to give up its claim on Vaux if that scheme goes ahead.


Arc chief executive David Walker said: "Tesco has owned the Vaux site for six years and there is still no prospect of them building a store on the land given current Government policy and the planning framework for the city. To our knowledge Tesco schemes elsewhere in the country are always underpinned by a large scale supermarket and so any such proposal for the Vaux site would not be acceptable.



"We are, however, encouraged by the fact that Tesco has recently submitted plans for Sunderland Retail Park. We have always said that we would welcome Tesco's investment in bringing a quality supermarket into the city of Sunderland, and the Retail Park is a much more appropriate site for the development they are proposing."



"What Sunderland arc and its Founder Members Sunderland City Council, One NorthEast and English Partnerships, are seeking to do on Vaux is to maximise the regenerative impact of the site. In support of this we are in the process of approaching developers to deliver a high quality, employment-led scheme that will create thousands of jobs and transform the economics of the city centre."