Western International tenants will be told next week whether they meet the local council's criteria to be relocated to a new site.

An EGM on July 4 will update tenants on the latest situation regarding the redevelopment of the market site, which will be followed next week by hand-delivered letters to all tenants. A pre-determined criteria, agreed by tenants, which accounts for usage, financial stability and rental payment history, has been used to decide the future of Western's traders.

A conditional agreement was signed on Wednesday between the London Borough of Hounslow and Kier Development. Depending on soil stability and contamination and archaeological surveys, Kier has committed to build a brand new market alongside a 310,000sqft distribution complex. The construction of the new market will be financed by the sale of the complex.

Graham Smith, Borough property manager (Western International Market), described the signing as 'a huge step forward'. He added: 'This is the first legally binding contract between the Council and Kier. Although it is subject to surveys, work on an application for planning in three months is well-advanced.' A date of six months from this Tuesday has been established for completion of pre-let agreements with tenants that are relocating. 'Tenants have been kept as fully informed as possible,' said Smith, 'and we have a very close relationship with the tenants' association. I do foresee problems with the tenants that are not being relocated, but arrangements are in place to minimise them [the problems].' One potential hurdle is the use of greenbelt land, although some of the lost land will be replaced. 'We think that the exceptional circumstances; the standing of the market as an employer and its importance to the local economy will help in that respect,' said Smith. 'We have already had positive discussions with the Government of London and are meeting the Greater London Authority next week, from which we expect more positive feedback.' The new site will not be completed for at least two years and, with a six-month hiatus expected for tenants to fit out their new units and relocate their businesses, the new market will not be operational for 'an absolute minimum of two and a half years', said Smith.

Tenants' association George Bray, said he was delighted that after years of hard work and negotiation, this agreement means redevelopment is closer than ever. 'Tenants and staff are delighted that the redevelopment is imminent,' he said. This will upgrade what is already a vibrant and thriving market, with modern facilities, which will give us the opportunity to make this the leading horticultural market in the UK.' Smith said that the market, which sees around £300 million of fruit, veg and flowers pass through its gates each year, is being redeveloped with future moves to composite sites in mind. 'We were very pleased to see Defra's recent comments as it appeared the City was trying to corner the whole thing for itself at Spitalfields. If Smithfield and Billingsgate do close down, we would be interestd in any tenants who wanted to come to Western, and there will be space set aside for that eventuality. It may require the use of more greenbelt land, so there would be financial and planning hurdles to overcome. We are conscious that we are slightly out of things here and we are not reliant on meat and fish coming here, but if the industry goes down that route, we want to be part of that.' He said he would be very wary of the complete abolition of the six and two third mile regulation. 'That would risk other markets springing up in London, which would not do anyone good. At the end of the day there is an interdependence on each other and that is crucial to the long term future of markets. Everyone seems to be forgetting the customers; composite markets would definitely be most helpful to their requirements.' Councillor John Chatt, leader of Hounslow Council, said: 'We are delighted our executive have helped deliver this landmark development for the borough, it will put Hounslow on the map. We are looking forward to working with Kier property Developments on this exciting development which is vital to the future of the market and to the economy of west London.' Kier director Nigel Turner added: 'Now that the development contract has been signed we can prepare the details to accompany planning application. With the proximity of the site to Heathrow and the M4 we expect occupational interest [in the 310,000sqft complex] to be strong.'