The boss of a Birmingham housing association yesterday criticised city councillors for putting the brakes on one of the largest regeneration projects in the country.

Simon Kimberley, chief executive of Optima Housing Association, was speaking after the council's Development Control Committee gave the go-ahead for a new Tesco store on the site of Bristol Street Motors.

The decision effectively kills off plans lodged by Optima's development partners for a #80 million regeneration project, centred on a 27-storey tower block underpinned by an Asda megastore.

Mr Kimberley claimed the decision was a "retrograde step" for the #350 million Attwood Green regeneration project.

Optima took over the running of the district after tenants voted to opt out of council control in 1998. The award winning scheme will see five estates in the heart of Birmingham being redeveloped.

Developers Crest Nicholson had their application to build the community-backed Asda complex on the corner of Bristol Street and Lee Bank Middleway turned down by the council's planning committee on Thursday.

Mr Kimberley said: "I am disappointed. I do understand the statutory requirements that the council have to work under but I do think councillors have failed to take account of the effect this will have on Attwood Green.

"It certainly stalls the building of a development on that site and is a retrograde step for Attwood Green. The residents would be very disappointed.

"We will undoubtedly complete the regeneration of the estate to the very highest standard, but this does set us back as it means that we cannot have an aspirational building on that site."

Residents who staged a sit-in to at the council house in protest at the Tesco proposals warned councillors to expect more of the same.

The Tesco application for a 6,500 sq metre superstore was submitted last September ? six months before Asda's 7,000 sq metre store.

Planning officials regard Asda's scheme as too large. However, they insist there is room for the development if the food store is slimmed down to only 1,500 sq metres.

Asda spokesman Simon Leonard said: "The decision made is absolutely scandalous and is against all the legal advice we have taken."

Tesco were yesterday unavailable for comment. However, it is understood a high quality landmark building would be erected on the Bristol Street Motors site.