A referendum could be held in Looe in a bid to assess local opinion on plans for a Tesco store on a site at the Barbican.

Representatives of the supermarket giant held a public consultation exercise at Looe Community Academy on Friday and Saturday at which they presented the pre-planning application proposals for the 25,000sqft store it hopes to build on the site adjoining the school.

About 600 people attended the exhibition and Tesco spokesman Simon Hoare, who was there on both days, said later that the company was 'very encouraged' by the response its proposals had received.

But Cornwall Councillor Armand Toms said this week that while he too had gained a 'clear indication' of the level of support among local people who attended, it was evident that many of them had not appreciated the full implications of the planned development, particularly for the local business community.

Local businesses, he said, were particularly worried by the effect of a supermarket development within the town. He is preparing a report for Looe town councillors in which he will call on them to hold a referendum to gauge the true extent of public opinion.

He will also ask them to carry out their own investigation into the economic effect of the new store to ensure they are fully informed before making any decisions in relation to a future planning application. The company proposes submitting an application in April and Mr Hoare said Tesco was currently evaluating the results of the weekend exhibition and waiting for the results of an ongoing consultation process.

'We were very encouraged by the level of support among local people,' he said. 'There was clearly a lot of interest and many issues of local concern.' He said the plans include a petrol station as well as a development of 30 houses of which as many as half could be affordable. The company was also setting aside 1.75 acres for community use and was keen to hear the views of local people on what they would like to see there. If the project gets the go-ahead, 180 jobs could be created.

Among the concerns raised by the public at the weekend are the effects on the nearby school and on traffic on the road leading to the Barbican. Tesco is known to have already held talks with the school and has offered the store car park as a drop-off point for children. Also under consideration is the imposition of a 20mph limit on the road outside the school.