Demolition work on the Vaux site began last year

Councillors will be asked this week to appoint consultants to deal with the rival bids from Tesco and Sunderland Arc to stop the civic centre's planning department being swamped by the workload.

The figure includes the cost of appointing outside consultants to deal with the applications and planning costs right through to a public inquiry.

Tesco owns the former brewery site in the city centre and wants to build a superstore at the heart of a mixed development costing �50m.

But the Arc regeneration team has submitted rival plans for a �280m homes, leisure and business complex.

Eventual solution

The superstore idea, announced in September 2002 and now submitted for planning approval, features a 80,000 square foot hypermarket, a 20,000 square foot car park, and associated apartments and offices.

But some city councillors and agencies, including One NorthEast and English Partnerships, want to see the Arc scheme go-ahead.

Sunderland South MP Chris Mullin told BBC Radio Newcastle he will not take sides in the tug of war.

He said: "What is done with it [the site] will affect the future of the city centre for years to come, so it is very important that we get it right.

"I hope that the Arc and Tesco are talking to each other and a suitable solution is arrived at eventually.

"I don't mind it if takes a little bit of time because the important thing is getting it right."