RENEWED claims that Waverley Borough Council executive has recommended Sainsbury as the preferred developer for the East Street scheme because it is the most profitable, surfaced at a Farnham Town Council meeting last Thursday.

Liberal Democrat councillors Mike Clark and Victor Duckett asked chief planning officer Stephen Thwaites to comment on whether or not the scheme resulted in a "significant capital reserve" for Waverley and if Sainsbury's will be "chucking in more money than other developers."

However, Mr Thwaites defended the selection of the Sainsbury scheme and the council's motives,

"It is not chucking in money for the sake of it. So much has to be funded by this scheme, including social housing grant and community facilities.

"If the council had gone along with some of the other schemes it would have had to pay several millions ourselves which we don't have."

His comments were reiterated by Waverley portfolio holder for East Street, Captain Peter Burden, who said the estimated "developed value" of the scheme on completion is around £120 million.

"This is a very suitable scheme for the site. The site is very large and should take the proposed amount of housing comfortably. We must fulfil the local demand for affordable housing."

Duncan Steel said: "Waverley deny that money has been the primary motive but the amount of retail and office space is so great so it will bring in more rent than any of the other schemes.

"Sainsbury's will have 285,000 square metres of housing space. The development is too much for Farnham to absorb and it will a have a depressing effect on other shops."

The Sainsbury proposal is the largest scheme and will see its current South Street branch relocated to Dogflud Way, leaving scope for a hotel and office, and giving a new frontage to South Street. A cinema and other leisure facilities have been proposed in the centre.

All schemes were rated according to a number of factors and Sainsbury's came out top in terms of capital premiums and rent incomes.

Mr Thwaites added there was "clear water" between the scheme and its nearest rivals, Grainger Trust and The Raven Group.

p More East Street coverage Pages 2, 7, 9 and in Letters to the Editor, Page 12.