South Kesteven District Council will this month carry out a retail survey in the town to determine whether to press ahead with the redevelopment or look to carry out a smaller scheme.

The council will look at what shops already exist and how many, if any, will be needed in the future before it presses ahead with plans for the scheme between West Street, Burghley Street and North Street. The scheme is made up of between 25 and 30 shops, as well as flats.

District council leader Linda Neal (Con) said the outcome of the study, due to be finished at the end of the month, would determine whether the scheme was still viable.

She said: "Once the council has got the results of the study, it will need to look at it alongside the current economic climate and re-evaluate the viability of delivering the scheme as currently proposed.

"We might think that what we were thinking about is not viable but that doesn't mean to say that something else will not be viable. It might mean it is something smaller or for a different purpose.

"The study will inform the decisions the council makes about the town centre redevelopment."

Until the study is completed, the district council has put on hold buying properties within the redevelopment area.

The council already owns 37 per cent of the site which is made up of two car parks, the Wherry's warehouse, Freeman's motor salvage yard and two houses in Burghley Street.

A homeowner in Burghley Street, who asked not to be named, was in negotiations with the district council to sell his property.

He is angry that the retail study has meant the sale cannot go ahead yet and has been forced to consider putting it back on the market.

He said: "The council has left me in limbo and I'm very annoyed with them. I took it off the market and now I don't know where I stand.

"The council has bought properties nearby so I don't understand why they can't buy my house."

Coun Neal said she had a huge amount of sympathy for the man.
She added: "He insisted on having an answer and at this moment in time, the answer has to be no because we are in no man's land until we have got the retail study in front of us and can make an informed decision."

The council has been considering the town centre redevelopment since 2004.

In 2006, Henry Davidson Developments was dropped from the scheme and the council began talks to find a new developer. It was informally consulting Wilson Bowden and Dencora.

In May last year, the council said a formal tender to find a new developer was no longer viable in the recession and had decided to try and buy as many properties as possible within the redevelopment area so it was in a "more responsible bargaining position".

At that time the council said it was still hoping to have started the project by 2012, although it intended to deliver it in phases.