Major plans for an Aldi superstore, Starbucks drive-thru and a gym on a former Pirelli site in Burton have been thrown out - sparking celebrations at the town's Rugby Club.

The proposed retail developments at Albion Gateway, off Derby Road, had been recommended for approval as part of a huge revamp for the former landmark industrial site near the Pirelli Stadium.

But the proposals were rejected by a 10-1 majority of East Staffordshire borough councillors amid fears the plans would severely hit trade in the town centre and "blow holes" in the local plan blueprint for the area.

The council decision will be greeted with relief by members of the town's Rugby Club, which is selling off its Peel Croft land to create the newly approved Burton Shopping Park to help fund its move to a multi-million pound sports hub in Tatenhill.

Aldi's plans have been turned down

Club members believe that if the retail plans at the Albion Gateway had been approved the development of Burton Shopping Park would be jeopardised, and with it the proposed move to the sports hub.

It had sparked a feud between the club and the applicant of the Albion Gateway, development firm St Modwen, who had commitments from German retailer Aldi to bring businesses to both retail parks.

As well as an Aldi store, plans for Albion Gateway had also included a Starbucks drive-thru, a gym, a total of four retail units and a builders merchants.

It had formed part of a wider redevelopment of the site which includes up to 300 homes, some of which are still under construction.

The application had also previously included a hotel and pub but the developer said no operators have come forward.

But the controversial application has now been refused by members of East Staffordshire Borough Council’s planning committee after the proposal failed a "sequential test" which ensures retail and other development appropriate in town centres do not detract from town centre trade.

The authority’s planning officers said the application failed the sequential test, as it was outside of the town centre, and therefore contrary to the council’s local plan. But the benefits of the proposal were considered to outweigh the test failure. But even after this was reported to the meeting at Burton Town Hall yesterday, councillors still voted to turn the plan down.

In a report council planning officers said these benefits of the scheme included:

· The outstanding need for convenience retail over the plan period.

· The retail floorspace figures set out in the Local Plan do not represent maximum figures.

· Planning permission was resolved to be granted for a larger scheme (Tesco Express, in Hawkins Lane), outside the town centre in 2012, which was considered to have a greater impact on the town centre. This plan was later withdrawn by Tesco.

· There was no demand for a hotel or local pub/restaurant in this location given and that these uses are adequately represented in the town centre or more generally in the town, and the economic benefits in terms of bringing into use a brownfield site.

· Economic benefits in terms of employment during the construction phase.

· Longer term economic benefits and opportunities in terms of employment when the proposed units are operational and also when all buildings are fully operational.

The report said: "These material considerations are so significant that they are considered to outweigh the very significant weight which was to be attached to the failure to pass the sequential test. In addition, the design of the proposal would create a mixed use development in a contemporary and coherent way and the scale, massing and detailing of the buildings will be appropriate for the locality and improve the appearance of the site.

They also said: "The development will be acceptable in terms of the impact on the highway network, highway safety, flood risk and drainage, air quality, contamination, ecological interests and the amenity of nearby residents."

The council heard there had been three objectors to the application.
One objector was Colin Grimsdell, the lead behind the rugby club’s move to Tatenhill and the subsequent Burton Shopping Park.

Mr Grimsdell, the Rugby Club's development chairman, told councillors: "We want you to consider the wider condition that we are trying to create a multi-sports hub in Tatenhill which will be used for rugby, cricket, and netball etc.

"It is of key strategic importance identified by the council and is dependent on raising certain amount of money through the sale of Peel Croft.

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"If the Derby Road development goes ahead then we know from exhaustive time spent that there isn’t massive demand for retail to come to Burton. If this goes ahead the Peel Croft will not be developed."

Another objector, Stretton resident Graham Lamb predicted traffic flow problems around the development.

He said: "The Princess Way roundabout is not fit for purpose and this is before we have another 250 homes and this development."

A Starbucks was also planned for the yet-to-be-built Albion Gateway development

However, Rob Barnes, acting on behalf of developer St Modwen, denied that Peel Croft would fail if the Derby Road application went ahead.
He said: "This scheme will completely regenerate surplus land at Pirelli. It meets the borough council’s needs. There is a clear need for development.

"There are only three private objectors and one is from the Peel Croft development. We are aware of the long term benefit of that site but to say including a supermarket at Pirelli would cause Peel Croft to fall away is not credible. It is not an either or situation. We know there would be demand for two or more supermarkets."

Planning committee member Councillor Julia Jessel told the meeting: "Overall the development is well sought out and St Modwen is a successful developer in this area and we will welcome vacant sites like this being developed. But while 75 per cent of the development is fine, the other 25 per cent – the supermarket - I do object to and we are at risk of being persuaded by the 75 per cent to overlook that 25 per cent which is contrary to our local plan.

"If we start to blow holes in the local plan then others will follow. Retail should be concentrated in the town centre and if we are not careful we will only have ourselves to blame if Burton continues to suffer.

"The sequential test is a major consideration and the food store fails the sequential test and if this planning committee decides to ignore this we are at risk of putting our local plan at risk. It doesn’t comply with the local plan. The rest of the site I don’t dispute.

"Stretton is quite well served by shops, providing good facilities but with the traffic, turning right (into the retail park) will be a nightmare, you are taking your life into your own hands. They should go back to look at traffic flows.
"If approved this will blow the local plan out of the water."

The proposals for the now-refused Albion Gateway

Councillor Raymond Faulkner added: "If we allow this planning application to go ahead it would mean that we allow a convenience store outside the town centre.
"We have got to look at this in terms of the local plan. The council made a few points about why it should be approved but these are covered by the Peel Croft development. They do not outweigh the sequential test.
"Planning officers are completely letting down our residents."

Councillor Ron Clarke said: "We are in the process of regenerating the town centre and this would be a step backwards in regeneration.

"I am seeing shops closing in Stafford and eventually all stores move outside the town centre and I don’t want to see this in Burton. We should refuse this with the future of Burton in mind."

Chairman of the planning committee, Councillor Edward Barker said: "We would like to see something on this site but we cannot go against the local plan."

Councillors refused the application with a 10-1 majority on the basis that it failed the sequential test and was contrary to the local plan.