A "significant proportion" of businesses around Anglia Square may not return if the area is redeveloped, a council official has revealed.
Anglia Square and the surrounding streets are set to undergo a massive transformation, with plans for the shopping centre to be demolished and up to 1,100 homes built at the 11.5-acre site.
Businesses currently housed in the shopping centre are meant to be moved from the site and then returned but doubts have been cast on how many will come back.
In previous, now rejected plans, a vacant plot under St Crispen's Flyover, off Magdalen Street, would have been used to provide temporary housing in refitted shipping containers for existing businesses. It is not clear whether these plans will return.
In an email seen by this newspaper, a senior council officer said the plans will have a direct impact on existing tenants during the demolition and construction phase.
They said: "It is hoped that a significant proportion will remain and be relocated in the new centre.
"But a significant proportion will not, either because they are displaced by the early phases of development at a point where no alternative accommodation can be provided or because the scheme in the longer term does not provide suitable accommodation."
Alex Catt, Sewell ward councillor for the Green group, has raised concerns that small businesses will struggle to return.
"There are so many great independent businesses and in a lot of cases, they’re good for accessibility for people that can't get into the city centre," he said.
“It’s very unclear what proportion will be able to stay, I wish they would provide some clarity to local businesses.
“The issue of rent is the other thing. The chains that can afford it will be able to stay but not all the small businesses will be in a position to do that and sustain themselves.
"It will take away what makes that area special and become another characterless development.”
Mr Catt accused the developer, Weston Homes, and the city council, of being secretive and inconsistent in the information they have provided to the public and businesses.
He added: “To me, it shows that they haven’t listened to the mistakes in the first development plan which was very unpopular with residents.
“People want it to be developed but they want the small businesses to remain."
A spokesman for Weston Homes said: “The regeneration of Anglia Square will deliver a range of retail units able to accommodate businesses of various sizes once complete.
"We have worked closely with the city council to cater for all business types, specifically including smaller units that could be suitable for local businesses.
"The retail market has changed considerably over the past few years and we are working hard to provide flexible spaces that can be adapted to meet shifting needs in the future."
He said the logistics of construction are "incredibly complex" but Weston Homes maintains a commitment to keeping Anglia Square functioning to meet locals' needs.
Development is expected to be phased, aiming to keep a proportion of the centre operating.
Current plans include four large units for existing tenants, such as Boots or Iceland.
The council officer's email also said that rent levels at the square reflect the condition of the existing site and flexible lease arrangements are in place.
It said: "The leases allow for short notice periods, a mechanism used when sites are earmarked for development.
"New commercial floorspace would not be subject to the same limitations but as referred to above the applicant has indicated that businesses are likely to benefit from higher levels of footfall and expenditure."
A date for determining a planning application for the development has not yet been set.
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