THE PROSPECT of a huge distribution centre next to Greenham Common could be thrown into doubt by turmoil at the developer's Denver headquarters.
Despite an ongoing public inquiry into whether global logistics firm ProLogis should be allowed to build a row of controversial warehouses next to the common, the ramifications of boardroom upheaval 4,500 miles away may ultimately decide the plans' fate.
The multinational company's CEO, Jeffrey Schwartz resigned yesterday (Wednesday), and the firm announced a freeze on all new developments.
Speaking to newburytoday.co.uk at the public inquiry, ProLogis UK vice president Neil Dickinson refused to be drawn on the implications for the proposed New Greenham Park depot, even if it granted planning permission.
“We will have to look at the pros and cons of every site,” he said.
A statement on the company's website says: “The company said that it intends to complete those development projects currently underway. Going forward, however, the company does not expect any new development activity for the foreseeable future and will not pursue entry into any new markets until conditions improve and liquidity returns.”
American investors have criticised the developer's aggressive expansion strategy in the midst of the financial crisis, amid fears it may not remain solvent in the coming year.
Yesterday it also cut its annual dividend from $2.28 per share to $1, and announced an up to 25 per cent cut in operating costs.
After the announcement, the firm's share price plummeted by 47 per cent.
If the New Greenham Park project is mothballed, it could be a case of history repeating itself.
In 2005, Sainsbury's sold the site to ProLogis after winning a long battle to get planning permission for the site, only for financial pressures to lead them to abandon the scheme.
At the public inquiry today, Stuart Tagg, the chief executive of New Greenham Park, said that the development of the business park had been part of the original plans for the common.
He said that the sequence of events leading up to the transformation of the air base to common land had always included development at New Greenham Park which would alter the landscape.
“Even the council has seemed to forget the wider vision,” he said.
He said the 1990s plan to transform of the airbase had brought many benefits to the people of Newbury, including recreating the common.
“What we're suffering from is because all these really positive thing are finished, there is now a reluctance to have negative things that were always part of the overall package.” he said.
He added: “Historically, common land was an economic means of support for the less well off. Things have moved on. The less well off now make ends meet by taking a job – the sort of job that might be created at New Greenham Park.”
Also addressing the inquiry, one Headley resident said the new distribution centre would “toss fuel on the fire” of the already congested A339.
Ted Snook, of Home Farm, said: “To really understand the plight of the Headley people, you need to spend time in Headley.
“I would claim we have a better view of the situation that pervades Headley than most of the experts.”
He added: “The road was designed for the farming community and so on. It is now asked to carry traffic of motorway proportions.
“Two giant HGVs will pass at a combined speed of 100 mph. As they do that, mother and child will walk on the pavement. An old gentleman with a stick will walk the pavement.”
“It is like walking down a motorway heading for the emergency telephone when your car has broken down, with nothing between you and the traffic,” he added.