Preston's £700m regeneration is facing "uncertainty" because of a looming £800,000 public inquiry, it was revealed today.
Objections from neighbouring Blackburn and Blackpool councils will force the Government to order a detailed review of the plans to revamp 32 acres of the city centre.
In a last ditch attempt to avert the costly inquiry, Preston city leaders have put the Tithebarn plans on ice for a few weeks to allow extra time to persuade the objectors to change their minds.
The planning application, which includes a new John Lewis department store, is now expected to be considered in June.
Jim Carr, chief executive of Preston Council, said: "The developer is getting uneasy because of the current planning situation and planning uncertainties.
"For them to move on through a public inquiry will cost them £800,000 at a time when companies are struggling to get hold of money.
"We've tried to prove to Blackburn and Blackpool that their concerns are unfounded but they've not been convinced.
But today, Blackpool's regeneration boss, Coun Maxine Callow, remained adamant in her objections and said: "I think we've said enough about Tithebarn – we're objecting and that's the end of it.
"Tell them not to bother delaying it – there's absolutely no way that we're changing our minds."
Coun Michael Lee, leader of Blackburn with Darwen Council, said: "I'm happy to sit down with them again and go through it and we'll show them our figures and our projections.
"I can't guarantee we would withdraw our objections because we feel their figures are wrong.
"I'm elected to look after the interests of Blackburn and Darwen and I must make sure I do that."
Mr Carr said he felt there was now an "80% chance" the project would go ahead but said the "uncertainties" over Tithebarn were "putting a brake of the city's progression".
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