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TESCO is refusing to confirm whether it will give its consent to a multi-million pound development in Cam after dragging its heels for several months.
Plans to redevelop a site on Chapel Street have ground to a halt because the company holds a covenant over part of the nearby land.
The legal agreement states that the area must remain as a car park unless Tesco gives its approval - even though the land is owned by Stroud District Council.
The covenant was originally held by the Co-op, when the firm had a branch at the site before it was bought by Tesco last year, to prevent rival shops being built nearby. Ironically, the Co-op had agreed to lift the order before leaving Cam.
If Tesco refuses to reverse the covenant the development, including 11 houses, five shops and a parish council office, cannot go ahead.
Cam parish councillors, who have agreed to help fund the scheme along with a building firm, have grown weary of Tesco's attitude.
Chairman Cllr Dennis Andrewartha said: "Local businesses and people want this project to go ahead desperately but it just keeps dragging on and on.
"We want a development that gives Cam more than just a Tesco store, something this will do. It will bring houses, shops and a central focus to the area.
"The population of Cam is bigger than that of Dursley and yet we have no facilities. We urge Tesco to let us know where they stand and get involved in this community project."
Just last month, Tesco refused to accept a letter from the parish council that had been sent by recorded delivery and was returned marked declined.
Despite several calls, no-one from Tesco was willing to comment to the Gazette before going to press.
A spokesman for Stroud District Council said it supported the parish council development, which has been granted outline planning permission, but added that the authority did not have the power to force Tesco to lift the covenant.
Cllr Andrewartha added: "This is an important development for Cam - we intend to get things resolved soon."
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