The £80m New Squares scheme in Penrith ran into difficulty two years ago when the Australian backers pulled out blaming the recession.
Since then Eden District Council has been it talks with Sainsbury’s about scaling down the project to get the mixed use scheme also containing offices and housing going again.
The new proposals would see Sainsbury’s build the entire scheme including the now larger 55,000 sq ft foodstore, reduced car parking and fewer houses.
Paul Miller, development surveyor at Sainsbury’s, said: “In order to keep our promise to build the entire New Squares development, we propose some amendments to the original scheme design and to the construction phasing.”
Armstrong will shortly begin housing construction to meet the requirements of the Homes and Communities Agency funding deal. It will also begin enabling works for the enlarged supermarket.
The store and car park are planned to open in April 2012.