A judicial review into plans to build a park-and-ride, a Waitrose supermarket and homes on the edge of Truro has put an application for European funding at risk, according to a Cornwall Council cabinet member.
Plans for the highly-controversial Truro Eastern District Centre (TEDC), which would also include a Cornish produce food hall, recycling centre and create 200 jobs, were narrowly approved in 2012.
However, a judicial review was lodged by Truro City Council earlier this year challenging the application and is due to be determined by the High Court at the end of next month.
If unsuccessful, the door would be open for Cornwall Council, the Duchy of Cornwall, Waitrose and local food producer the Taste of Cornwall, to continue with the development, which is believed to cost around £40million.
However, an application for support from the last round of EU Convergence funding, thought to be in the millions, was said to be in jeopardy last week by Julian German, council portfolio holder for economy and culture.
In answer to a question from Conservative leader Fiona Ferguson at a cabinet meeting, Mr German stated that the judicial review had put the EU convergence funding at risk.
Mrs Ferguson said it was reminiscent of plans to redevelop Penzance harbour which lost £12 million in EU convergence funding after proposals stalled.
She said: "I was concerned about the possible loss of EU funding but I am sure the council would do everything it can to mitigate that."
She said she was yet to sit down and have a discussion with Mr German about it but said it was a possibility that the application could be transferred to the next round of EU Convergence funding awarded to Cornwall from 2014 to 2020.
The judicial review is due to be determined on July 24 and 25. Truro City and Cornwall councillor Rob Nolan said: "We are challenging the entire decision process. What we want is quite simple. We want to keep the centre of Truro vibrant as a shopping centre, out-of-town supermarkets don't help."
Elwyn Jones, chairman of Taste of Cornwall, said: "As far as I am personally concerned, if the decision goes against us we will all go off and get on with other things. If we win we will hope to be able to access the next round of funding."
