The completion of the two housing estates at Lindley Moor is under threat after a developer reneged on its promise to build new traffic lights.
A stand off between housing firms Harron Homes, Taylor Wimpey and property developer Stirling Scotfield was revealed amid complaints about a proposed new car dealership at Lindley Moor Road.
A bid to create a new Rybrook Jaguar Land Rover dealer next to the new build estates was lodged earlier this year.
But at the planning meeting set to approve it, it emerged that Stirling Scotfield had not yet honoured its part of a joint obligation to upgrade the roads.
The firm, which has been behind the wider development of the Lindley Moor area, is legally committed to installing traffic lights at the junction of Crosland Road and Lindley Moor Road, along with a number of other improvements.
A joint legal agreement was signed by the three firms in 2015 as part of the original planning consent for the whole site.
While the two housing firms have handed over their money for road upgrades and new cycle paths, which have now been built, Stirling Scotfield has not.
The work was supposed to be completed by last December or before the completion of the 126th house – the halfway point of the 252 home estate.
At the Strategic Planning Committee set to decide if the new car dealership could be built, Harron Homes took the unusual step of sending a spokesman to raise their concerns.
He said the lack of action was putting the entire homes plan at risk and claimed they would have to “mothball” the site if Stirling Scotfield did not fulfil its promise.
A spokesman for Stirling Scotfield admitted the “timescales had slipped” and said they wanted approval for the car dealership before they began the project.
He said they had the funds and would deliver within nine months if the Jaguar Land Rover plan was given the go-ahead.
But angry councillors questioned why planning enforcement had not made the developer stick to its commitments.
Clr Donald Firth blasted everyone involved with the situation.
“I’m not happy with this at all,” he said. “It doesn’t feel right, it doesn’t sound right.
“If nothing ever gets finished we as a council will be picking up the bill.”
Clr Paul Kane added: “Why haven’t we enforced this, it’s absolutely ridiculous.”
Clr Steve Hall agreed: “As a councillor, if you make a mistake the public jump all over you.
“We’re putting ourselves at risk again, it’s not on.”
Council officials said they were demanding the money be handed over before any work on the car dealership commenced.
Councillors said they wanted it secured before they gave planning approval.
One official said enforcement action was still possible and said they were giving Stirling Scotfield a little more time before getting heavy handed.
Councillors agreed to defer the decision until the situation was clearer.