A LEADING garage may be forced to sell up to make way for a multi-million pound retail park in York.

Councillors are being urged to consider issuing compulsory purchase proceedings to secure premises owned by Kwik-Fit, in Foss Islands Road.

Work on the complex cannot not start until the site is acquired, officers have warned.

The tyre specialists have agreed in principle to sell their land to developers Keyland Gregory (Retail) Limited, but talks have stalled on the exact terms, prompting the council to look at forcing their hand.

In a report to City of York Council's executive, development officer Ann Ward said: "If the land is not secured the development cannot go ahead and the wider public benefits arising from the regeneration of this area will not be achieved.

"Whilst Kwik-Fit have indicated they are willing to sell their property and relocate in the new development the terms of sale have not been agreed."

The developers have said construction work on the 14.5-acre complex will start next January, following the relocation of the council's waste disposal depot to James Street.

The retail park, which is set to include York's first Morrisons supermarket, is due to be completed by early 2007.

Keyland said the project, which will create hundreds of jobs, was one of the biggest new retail developments taking place in the north of England. A new link road will also connect James Street and Heworth Green, alleviating pressure on Foss Islands Road.

The developer would pay for the costs of the compulsory purchase order and compensate Kwik-Fit for the loss of its site. A new garage would be relocated within the new development and a financial contribution made to make up for any disruption.

The development of the Foss Islands site, was granted outline planning permission last year.

It also includes, a terrace of retail units ranging from 10,000 to 75,000 sq ft, intended for bulky retailers, a 4,000 sq ft restaurant, 600 car parking spaces and a bus route into the site.

The matter will go before the council's executive tomorrow, at 2pm.

Updated: 08:36 Monday, March 14, 2005