Council officials are facing mounting pressure to bring to a close a long-running planning saga which could affect hundreds of jobs.
The North Oxfordshire Consortium has spent the past 11 years trying to push through proposals to build 1,000 homes, a primary school and a number of retail and business units at the former US Air Force base at Upper Heyford.
But Cherwell District Council has continued to resist the move, claiming it wants to preserve the site's character and local ecology.
This has sparked fears that major employers such as Paragon Fleet Solutions, formerly QEK, will pull out creating up to 1,500 job losses. Now the South East England Development Agency (Seeda) has urged district planners to give the scheme permission to go ahead, after officials held talks with the council's head of planning, John Hoad.
In a letter to Mr Hoad, Paul Lovejoy, executive director of strategy and communications at Seeda, said: "We continue to have concerns about the potential loss of existing jobs on the site.
"Seeda estimates that in total, including local supply chains, between 1,200-1,500 jobs are at risk.
"We would argue that in the longer term, the area will suffer considerable damage, both within the remaining business community and also with any potential new investors."
Steve Maltby, managing director of Paragon Fleet Solutions, said: "It is great that Seeda has recognised the importance of jobs at Heyford Park.
"As the biggest employer at the base, we have real concerns."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article