City planners have accused Longbridge developer St Modwen of compromising its vision for the former Rover site by replacing industrial development with housing and retail.
The council's planning committee has become increasingly concerned that plans to create 10,000 jobs through mainly industrial development are being compromised for easy profits through housing and shops, like the major Marks & Spencer store currently under construction.
But St Modwen has defended its record, saying it has so far created 3,500 jobs during the recession with more to come as development continues.
Plans for the next phase of development on the site include accommodation for defence medicine staff, 215 new homes and a major office block.
But committee members were unimpressed by the lack of industrial development and ordered planning officers to be stricter with the company over future proposals.
Coun Barry Henley (Lab Brandwood) said: "They have blasted complete holes in the action plan. They are supposed to deliver 10,000 jobs.
"Where the plan said regional investment site, their map shows Royal College of Defence Medicine accommodation. I've no objection to the accommodation, but it isn't our plan, which they are supposedly our agent in delivering."
He called for a review of the prospects from employment and added: "I have a strong feeling that instead of maximising employment opportunities they are maximising profit. Developers do that, we can't take a moral position, that is their job. But planners should regulate that profit imperative to make sure the community gets the benefits.
"On face value we are not getting the benefits when we licensed them to develop Longbridge."
He was backed by Coun Peter Douglas Osborn (Con Weoley) who described St Modwen as a ‘jam-tomorrow company' offering jobs and industry in the future, while doing little now.
He criticised the proposed One Park Square office development, saying it would be too large to generate new jobs. Rather it would more likely attract an established company which was relocating from elsewhere.
He said: "There is a need for the housing but we, as the planning authority, also must acknowledge there should be work available for people moving in and there should be subsidised housing for those people coming for the unskilled jobs.
"The Longbridge Area Action plan as far as I can see is a dead duck now."
There was also criticism from Coun Peter Griffiths (Lab Kings Norton) who said the level of affordable housing so far given planning permission – 238 units out of 1,294 – falls way short of the original proposals: "It is derisory, it's eight per cent," he said.
He also pointed out that 156 of the affordable units were retirement accommodation and therefore age-restricted.
"We will never sort out residents' housing needs in Birmingham if we cannot get the developer to increase this offer to families," he added.
St Modwen took on the £1 billion regeneration of the site after the collapse of MG Rover in 2005.
Senior development surveyor Mike Murray hit back at the criticism: "There is a lack of understanding. Since 2007, we have created more than 3,500 jobs, through 40 companies – part-time, full-time, unskilled and skilled. It has been difficult. We have achieved this during a recession."
He said the firm had just completed a data centre as well as building more than 500 much-needed houses. A small-scale Device Lab business for app developers has also recently been launched.
"That is the first in this region. We are supporting IT companies," he said.
"We're planning for the future, for the entire region, not just to satisfy the planning committee. There also needs to be an understanding that all this has been achieved outside of the city centre," he added.
Last week, St Modwen announced plans for One Park Square, a four-storey, grade A office development of around 105,000 sq ft with parking for 150 cars, aimed at attracting a major corporate occupier. There is also a planning application for 215 homes in the pipeline.
