New flats and shops being built in Wigan town centre could be knocked down as part of the council's redevelopment plans – but the owner will not sell.
The former Market Tavern pub in Mesnes Street, which was the Simply Thai restaurant more recently, is part of the plans for the Galleries shopping centre.
But the building is currently being converted to seven flats and two retail units.
Last week, planning permission was granted to demolish the Galleries and Wigan Market to make way for a new market hall, a hotel and more than 400 homes – including a block of flats on the site of the historic pub building.
The owner of the property, CRF Estates Ltd, has refused to sell the site which Wigan council now says is 'not fundamental' for the Galleries 25 project.
However, a CRF Estates spokesperson said the development company, fears the local authority could use a compulsory purchase order (CPO) to buy the building.
And although the council does not currently plan to use these powers, the developer is struggling to sell the new retail space due to this uncertainty.
He said: "Nobody's going to invest in the building now.
"At the moment, we're stuck in the middle.
"The way we're being treated is disgusting. We feel completely let down."
The Liverpool-based developer has spent hundreds of thousands of pounds converting the building – and construction should be complete in two weeks.
Tenants could move into the apartments by Christmas, but retailers have been reluctant to rent the floorspace knowing the site could soon be demolished.
A spokesperson for Cityheart, the council's development partner for the Galleries 25 project, said that it no longer intends to demolish the building.
And while the company could not rule out using a CPO in the future, it would have to submit a more detailed application before demolition could take place.
Managing director Mark McNamee said it is 'absolutely not' important for Cityheart to acquire the site which it had planned to use for new apartments.
He said: "It's up to the owners whether they want to come in and be part of the scheme – and at the moment, they don't.
"We can deliver a fantastic scheme without it."
Wigan council's interim director of economy and skills Aidan Thatcher said that although planning permission has been granted to knock down the building, the project could go ahead without the demolition taking place.
He explained that the site had to be part of the demolition plan for the project.
But any planning application that is submitted does not have to be completed in totality and, in this case, planning permission could be partly implemented.
He said: "Because Cityheart don't have control of that building, it isn't looking to progress any demolition.
"But it does have to be part of the planning just in case that eventuality became a reality."
A Wigan council spokesperson confirmed there is no plan to use a CPO 'at this time' as the site is 'not fundamental' to the objectives of the redevelopment.
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