Work on the Imrie Place building was halted briefly last week while the concerns of householders over the height of the property were investigated by Midlothian Council.
One resident, who did not wish to be identified, told The Advertiser that whe
n he received his neighbour notification for the initial planning application in 2007 he went to view the plans at the Penicuik Library.
He claimed it had now become apparent that the plans he saw related to LJR Properties' proposed retail unit on the other side of the road, close to the Somerfield supermarket.
"All through this the majority of us were expecting a building the size of what we saw in the plans with a pitched roof on four sides, which would be a low level building because of the car park.
"Most people were under a delusion and when that went up – it is massive. The people in those houses are now looking at a plain wall which is probably going to be aluminium clad."
The new development is just over 11 metres from the front of Imrie Place houses.
Following a visit by council officials, the resident said the building was found to be seven per cent higher than indicated on the plans.
Another Imrie Place resident Martin Cook contacted The Advertiser to express his "utter dismay" at the "monstrous construction project" under way within the former car park.
LJR Properties declined to comment.
A Midlothian Council spokesman said: "It is normal procedure for council planning staff to monitor actual construction works to ensure new building complies fully with the plans as approved and also with building warrants."
Lidl's development executive Scotland Douglas Marshall said he was aware the construction of the new building, which the company would lease from the developer, was "slower than anticipated".
"We hoped to be open and trading before now. It is an unusual situation for us not to be controlling things on the ground," he added.
Full story in this week's Midlothian Advertisers – on sale now