Members of the council's policy and resources committee have agreed to recommend to the full council that plans for the site at Bogton Road in Forres should be halted.
Aberdeen-based Redco Milne has already received outline planning permission for a development on the site, the majority of which is held on the Forres Common Good account.
The project can only proceed if the council agrees to make the Common Good land available.
Yesterday the committee reviewed a report by retail consultants who examined Redco Milne's proposals for the site.
-- Advertisement --
Officials initially presented two options for the disposal of the Common Good land; a 'traditional approach' which would have seen the council receive a capital sum, and an 'income strip approach' which would have involved a capital sum as well as ongoing income from the development.
However, the 'traditional approach' option was discounted as unviable.
A third option, proposed by Councillor Allan Wright, was approved unanimously to advise Redco Milne that the council no longer wished the development to proceed.
Councillor Anne Skene, who seconded the third option, said: "There are no guarantees that the proposal would not result in a large deficit which would have to be borne by the Common Good Fund and the council.
"The Common Good Fund could be completely drained and the council could find itself in serious financial difficulties."
A full council meeting will debate the recommendation not to progress the development on 11 November.
(LM/CD)
