An ultimatum has been given to the developers of a major scheme in Peterborough after the city council threatened to remove planning permission for two new schools and nearly 800 homes.
Works at Paston Reserve, Newborough Road, have ground to a halt with only 87 houses being built so far.
The council said the different groups which make up the consortium behind the project cannot agree the sharing of costs and profits, which has delayed the building of the homes.
This has meant the Section 106 agreement - which sets out the contributions the developers would make towards funding the new primary and secondary schools in Paston, as well as a community centre and play facilities - has not been signed.
Officers are now recommending that its planning committee on Tuesday vote to take away permission from the scheme unless the groups reach an agreement before August 11.
Council leader Cllr John Holdich said threatening to remove planning permission was a tactic by the authority to force the consortium into concluding a quick deal.
He said: “We can’t just sit here doing nothing about it. But I think we will find an agreement before the meeting.”
In preparation of the Paston Reserve development, the council carried out nine months of works at the Junction 20 roundabout of the Paston Parkway, which included increasing the number of lanes approaching and on the roundabout.