UPDATED plans for the site that previously housed a gas holder in Salcombe's Gould Road are still unsatisfactory, according to town councillors.

Objecting to a new proposal for five houses over 300 square metres of commercial space, councillors said any redevelopment of the site should meet the demand for proper industrial units.

The plans currently under consideration are for commercial space in categories A1, A2 and A3, representing shops, ­professional services and cafes or restaurants.

The applicant, Freemantle Developments (Salcombe), said the proposed employment space would provide up to 20 full- and part-time jobs.

The land, which is opposite the entrance to Island Street on Gould Road, has long been ­allocated for commercial use in various local authority development plans.

But in 2013 Freemantle applied for permission to build five houses, saying that development of the site for employment use was not financially viable. When South Hams Council refused the application, the developer appealed.

Last year a planning inspector threw out the appeal, concluding that, contrary to claims from Freemantle, there was a 'reasonable prospect' of the site being developed for business use and so the business use allocation must be adhered to.

Although the site has been empty ever since the old gas holder was dismantled – a fact used by Freemantle to argue its case – the inspector noted that the National Grid had made no effort to secure development until 2011, when estate agent Savills began to market the land.

Freemantle paid £250,000 for the site, having carried out ­viability assessments that it said concluded employment-only development of the site was not viable financially.

In the new application Freemantle is sticking to its guns.

A statement drawn up by Hunter Page Planning claims: 'It has been robustly demonstrated that solely employment uses at the site are not financially viable or deliverable. Accordingly, the council must consider alternative uses for the site, including mixed-use development.'

The planning statement also talks of the necessity of a ­residential element to 'cross-subsidise' the provision of employment space. The application sets out plans for five three-bedroom homes, along with five parking spaces in a courtyard behind the building.

A parking turntable will

help homeowners deal with the confined space.

No dedicated parking is to be provided for the commercial units, although a 10-metre ­loading bay is included in the plans.

Salcombe Town Council's objections to the new plans were many and varied. Proposed cedar wood cladding and render were not felt to be appropriate for the industrial area, and there were concerns that proposed balconies at the first-floor level would be built right

up to the fence, overlooking the neighbouring garden.

Five parking spaces were felt to be insufficient for the size of the residential and commercial development, and if planning was permitted councillors asked for conditions to ensure that commercial units were let before residential units were sold, and the two elements were tied together.

Councillors also believed that plans provided with the application illustrating the uses of properties on Island Street were not correct and showed more retail than was actually present.

The town council felt that the application should be considered by the full district council planning committee because it is 'extremely sensitive'.