Cannock Asda reaches deal over £650,000 pot
A five-year battle between supermarket giant Asda and a district council has ended after a deal was reached over the ownership of a £650,000 pot of cash.
More than £500,000 was paid by Asda to Cannock Chase District Council as part of the conditions attached to building its 24-hour store in Avon Road, Cannock, and was earmarked to build an artificial sports pitch at the old Cannock Stadium. But since the stadium was demolished in November 2009, Asda has been trying to claim the money back.
The cash has sat untouched in the council's bank account for eight years since it was bequeathed by the store for leisure use.
Fresh negotiations between council bosses and the supermarket have now resulted in an agreement.
The authority will retain the £527,500 for a sports and recreation hub at the former stadium site and return to Asda the interest accrued on the amount, about £120,000.
Council leader George Adamson was delighted with the settlement.
He said: "I am pleased that this long-standing dispute has been resolved and that the funds are now protected for investment in sports facilities in the district."
The cash will be used together with other funds to establish new sports facilities, such as changing rooms, following an extensive public consultation last year.
The £527,500 sum was paid by Asda when the store was built in 2005, as part of a Section 106 requirement to contribute to the area.
It was earmarked for an all-weather field at the old Cannock Stadium in Pye Green Road before it was knocked down under the former Conservative administration who intended to build houses there.
According to the conditions, the council should have spent the money by May 2010 – and while Asda was initially willing to extend the time limit, it then said the stadium being demolished meant the agreement was void.
As part of the latest deal, the money has to be spent within six years, and Asda given proper recognition as being the co-funder of any sports facilities provided.
Doug Wilson, Asda's head of UK property communications, said: "We are delighted that the issue has been resolved and that the funds will be invested into sports facilities that will benefit the local community."
