Demolition work has started on a disused factory which could make way for a retail and leisure complex.
Supermarket chain Morrisons has applied for permission to build the complex next to its store in Uffington Road, Stamford UK on the site of the disused Mirlees Blackstone factory.
A spokesman for the supermarket said it hoped planning permission would be granted soon.
A spokesman said: "Following extensive negotiations with the local planning authority, we expect planning permission will be granted shortly.
"We are demolishing the redundant building on our Uffington Road site, as it is considered a liability."
South Kesteven District Council deferred the planning permission decision in March for councilors to consider more information presented by Stamford Chamber of Trade and Commerce, which objected to the application.
The chamber believes the application is in conflict with the local plan for the area.
Chamber president Tim Lee said "Morrisons own the site so it can do what it likes with it, but the issue is whether it builds on it. Planning permission has not been granted yet."
Morrisons' plans for the site include six shops, a JJB fitness centre with a gym and swimming pool and more than 200 car parking spaces. It would also build part of a relief road between its store and the new development.
It first applied for permission in April, 2005, but withdrew this bid. An appeal was due to be heard this month on its second application, but Morrisons withdrew the appeal as it expected that its third application, which was submitted in August 2006, would be approved.
A South Kesteven District Council spokesman said: "Planning permission is not required from the local plann-ing authority at this site for demolition. Permission is granted by the Secretary of State under of the Town and Country Planning Order."
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