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Council senior planner Phil Marshall said he had spoken to the company's planner yesterday morning, who agreed a fresh consent was needed for earthworks at the site.
The company would stop work at the site by tomorrow, avoiding the need for the council to serve an abatement notice, and would seek a fresh consent for the work by January 25, Mr Marshall said.
''I'm quite encouraged really ... Certainly now that the issue has been raised, they're acting responsibly and getting the correct planning advice.''
The development came a day after it was reported significant volumes of material were being trucked on to the site and spread to begin preparations for a future industrial development.
The activity angered Neil Cottle, the owner of nearby car yard Auto Court, who said the earthworks were unconsented, being carried out illegally and causing dust problems for neighbours.
The work had started before Christmas and was continuing this week, but Calder Stewart development director Alan Stewart, contacted on Tuesday, had insisted the activity was permitted.
He initially claimed it was covered by earlier consents issued in 2013 for the demolition of the former sports stadium, and later that contractors had ''an agreement'' with council staff to carry out the work.
Both claims were denied by Mr Marshall, who said yesterday the company now accepted the council's position.
The company would have to cease work by tomorrow and tidy the site to ensure dust was not a problem while a fresh consent was sought, he said.
The consent should be ''a fairly straightforward matter'' that covered the control of dust, stormwater and other ''technical'' issues associated with the earthworks, he said.
Mr Stewart did not respond to a request for comment yesterday.