Countdown supermarket is challenging the Palmerston North City Council to pay for creating new car parking if it goes ahead with plans to add lanes to Featherston St.

The supermarket will lose 44 car parks if the project goes ahead.

The city council is preparing the way for the intersection improvements with a proposed designation that covers a 6m strip of land extending along the supermarket's street frontage to Taonui St.

Countdown's parent company Progressive Enterprises is fighting back in a submission on proposed plan change 10, the review of the designations section of the District Plan.

Progressive would ideally like to have the designation withdrawn.

It says supermarkets are car-oriented businesses that depend on convenient parking a short walk from the door.

The loss of 44 parks would not only impact on its viability, it would put it in breach of its resource consent.

It wants the council to pay for providing alternative parking on the site to make up for the loss.

It also wants the council to reinstate its landscaping, planting and signage.

Council road planning team leader David Lane said the intersection improvements were a long term project.

Mr Lane said the council appreciated the effect the proposal would have on Countdown, and there was plenty of time to discuss the issues and come to an agreement.

- © Fairfax NZ News