A PLANNING application for a new, multi-million pound development on greenfield land opposite Bishopsmead in Tavistock could be submitted this year.

But the proposal has shocked the town's chamber of commerce, whose chairman says it will be 'disastrous' for Tavistock.

The land is earmarked for development within West Devon Borough Council's current local plan, but for employment purposes.

A bid by supermarket giant Sainsbury's was turned down by the borough in 2008. Sainsbury's appealed but a planning inspector backed the borough decision, following a planning inquiry in 2009.

Mercian Developments last week told Tavistock Town Council that its consultants had made representations to the inspector — and had put forward a scheme.

Chris Towers, Mercian managing director, said: 'The principle of retail on the site does seem to be acceptable, but we have to satisfy planning tests if we wish to include a food element.

'We feel that's required, because it's an enabler to take the site forward, in our opinion.'

Also included in the proposal was a health care provider, a budget hotel operator and a pub restaurant provider.

Mr Towers said: 'We have got some non-food interest, and we have had discussions with a certain food retailer who is interested in Tavistock at the moment.

'In terms of future progress, we are waiting to see what the inspector reports, but think we would possibly be putting in a planning application before Christmas.

Mr Towers told the Times that the Mercian proposal was an 'employment scheme, retail-led' and although at a very early stage, was a more comprehensive scheme than the Sainsbury's bid. For example, he said, the health care provider element could have major employment implications for the town.

'It could possibly be linked with the hospital, there might even be scope to relocate the hospital. If this provider came, he would be looking at up to 350 jobs.

'Tavistock is a strong town with some good retailers, but we have to address leakage, and retail expenditure is going out of Tavistock at the moment, without a doubt.

'The encouraging thing is that retailers do want to come to the town, but they can't get in because the space isn't big enough, and Plymouth Road is the only location to go.

'I think the town has the capacity to support another retail unit.'

Mr Towers said Tavistock Pannier Market was a big draw and Mercian was happy to work with the town council by suggesting options to maximise its potential.

The company has already produced drawings to illustrate how the area could be developed, including glassing over the market perimeter, extending the trading area into Market Road and installing a decking area by the river with café seating.

'We are offering to do this as a gesture because we are involved in the area. If we can do something to enhance the town centre and come up with some solutions, that has to be good news.'

Mr Towers told councillors the feedback from traders and members of the public following a recent open day in the town hall had been useful — further consultation with traders was necessary and a feasibility study would need to be drawn up. A public exhibition could then be staged.

But councillors were cautious in their reaction.

Cllr Ted Sherrell said a 'great number of people' were opposed to the previous out-of-town development proposed for Tavistock.

But he added: 'Everybody is always shocked about out-of-town proposals — but so many who are shocked today, are in them tomorrow.'

The land is not owned by the town council. Cllr Sherrell added that West Devon Borough Council, as the planning authority, would make any decision on its future use.

Cllr Brian Trew said: 'There is something that could possibly benefit us here and at the moment, it's not costing us a cent. I am all for going along with it, but being cautious — I don't think we should ignore it.'

But Nigel Eadie, chairman of Tavistock Chamber of Commerce, was incensed by the idea: 'There is no good news story here for Tavistock — it would be disastrous for the town and its traders.

'A development like this, in the current trading environment, would be absolutely the last nail in the coffin for Tavistock town centre.

'That these people can come in and woo the town council's affections by offering a few panes of glass for the pannier market, is absolutely scandalous, it's a complete and absolute disgrace.'

Mr Eadie said the Sainsbury's planning inquiry had involved minute dissection of the issues regarding an out of town shopping centre and he could not see how the proposals put forward by Mercian were any different.

Mr Eadie said even if a high-end retailer such as Waitrose was to come to Tavistock, he still felt it would affect the town centre.

'For every job that is created out of town, there will be two lost in the town centre — there is no doubt about that,' he said.