SUPERMARKET giant Tesco has been ousted from a crucial £150m regeneration project in north Liverpool, leaving its future uncertain last night.

The retailer and property developer St Modwen has broken off negotiations over Project Jennifer, which would have created the country’s second biggest supermarket on a site between Great Homer Street and Scotland Road.

The 115,000 sq ft giant was to have been the focal point for the entire 45-acre site which is also to include 480 homes, a hotel and public transport interchange.

St Modwen is now in talks with another major supermarket chain to replace Tesco. An announcement on this deal is expected in a few months’ time.

But Tesco says it owns a substantial chunk of the land and will oppose any plan to bring in a rival operator.

Both parties are also at logger- heads over development plans in Kirkby where St Modwen is objecting to the proposed Tesco superstore that will form part of the same development that could house Everton Football Club’s new ground. A spokesman for Tesco said they had not withdrawn from the development and in fact own a third of the land earmarked for the store.

He said: "We are committed to a great regeneration opportunity in this part of Liverpool. Unfortunately discussions have broken down because the developer has changed the terms of agreement."

He said any attempt to bring in another operator could put the whole development "in jeopardy".

The development, codenamed Project Jennifer, has proceeded slowly due to the protracted negotiations, plus the fact that compulsory purchase orders are required on businesses in the area.

The plans, which include a new home for Great Homer Street market, are seen as vital to regenerate parts of north Liverpool and will create around 800 jobs.

Michelle Taylor, regional director for St Modwen, said: "We have had negotiations for four years and have been unable to resolve matters.

"The most important thing is to move forward with the regeneration of Great Homer Street, and as a result of discussions with another leading supermarket we are hoping to announce the identity of the new retailer in the near future.

"The supermarket contributes to a large percentage of the retail offer so it’s important that we secure a company before we progress with the scheme and continue with our land acquisitions."

She said Tesco only owned a few acres of the entire site but declined to say how St Modwen would respond if the supermarket giant decided to stand in the way of the new store plan.

A Liverpool City Council spokesman said: "We welcome the news that St Modwen are in positive negotiations with a leading retailer with a view to them becoming the preferred anchor tenant for Project Jennifer.

"It safeguards this major scheme which will revitalise the Great Homer Street area of the city.

"The anchor tenant will be at the heart of a new retail centre for the area incorporating other stores, new community facilities including a library, a new home for the market and new public realm.

"Regular public meetings will recommence shortly, ensuring that local people are kept informed about progress on this exciting scheme.

"It is essential local people benefit from the new job opportunities it will bring and the council will be working with the developer to make sure that happens."

In Kirkby, St Modwen says the blueprint for a Tesco store and stadium for Everton would impact on its proposal to redevelop Skelmersdale town centre.

barry.turnbull@dailypost.co.uk