A decision by Sainsbury’s to abandon its plans for a major Perth superstore will cost taxpayers nearly £2.2 million.
The company was expected to contribute towards a vital upgrade of the A9/A85 junction, creating a link to a massive new development at Bertha Park.
A report to go before councillors this week calls for the expected contribution by Sainsbury’s of £2.18 million to be scratched from the road improvements fund.
The local authority insists the works, valued at nearly £40 million, will go ahead without the supermarket chain’s involvement but council funding will be needed to plug the deficit.
Willie Wilson, councillor for Perth City South, said: “Notwithstanding this report, this is still going to be a black hole in the capital budget of £2.18 million and that needs to be rectified.
“It looks like the main option is that taxpayers will have to foot the bill, at the end of the day.”
Councillor John Kellas, who made the motion to approve the £41 million Sainsbury’s plan in 2012, confirmed council funds would be used to cover the costs, although this could be recouped from future developers.
“We cannot allow a decision by Sainsbury’s to hold up a project as important as this,” he said.
“This whole infrastructure is not being put in place to support a supermarket, it is much bigger than that.”
Sainsbury’s wanted to redevelop the city’s old mart site, creating about 450 jobs, but announced it was pulling out this year, mainly due to legal action from rivals Tesco.
The new road, which will divert traffic away from congested areas and go some way to addressing air quality issues, has been described as “absolutely necessary” for the future of the city.
The development will see the council borrow up to £15.7 million with contributions from other developers amounting to around £15 million. The new route, which will also service a planned £23 million secondary school, is the first section of the proposed Cross Tay Link Road between the A93 at Scone and the A9 and forms a major part of the council’s planning strategy.