A former hotel described as a long-standing “eyesore” will be transformed into a three-storey development with flats, shops, a restaurant and pub.

Developer Peter Hall applied for planning permission to develop the former Normanby Hotel on Normanby Road, Normanby.

Now Redcar and Cleveland Council has approved the scheme to extend the empty two-storey building into a three-storey one with 13 flats with balconies, five shops, a restaurant and pub with a 23-space car park, despite the objections of a neighbouring children’s hospice.

The extension to the building’s front will create three shops. One ground floor section will be converted into a further two shops, and another will be converted into three flats.

The first floor will contain a restaurant with function room, and three flats. The second floor, which will extend the height of the building by 1.7m, will accommodate seven flats.

The proposals drew 21 letters of objections raising concerns over the development being “far too big, it will be an eyesore”, insufficient parking and trade, pubs “dying on their feet”, the restaurant balcony overlooking houses and causing noise at night, no need for more shops, “horrendous” traffic congestion, road safety, blocked views, parking and litter problems, anti-social behaviour, rodents, loss of community spirit and spoiling the “village feel to have a foreboding three-storey building”. There was one letter of support.

The nearby Zoe’s Place Children’s Hospice, which has a baby and children’s play area, end-of-life counselling facility and family accommodation behind the premises, raised concerns about the effect on its operation and service. But council planners felt with no windows on the east side it would be “acceptable and not appear overbearing to the staff and patients”.

The council’s development services manager Claire Griffiths said residents raised objections over the number of vacant shops already in the area and concerns over the “impact on the vitality and viability of the centre”. However she said retail units had been empty for a number of reasons including small size and high rent.

She told Redcar and Cleveland Council’s regulatory committee on Thursday (September 19): “This application will bring the site back into use within a local centre and retail is acceptable in its location.

“The proposed building is not considered to be of a scale detrimental to the area. The application is considered acceptable. It is recommended for approval subject to conditions.”

Council highway engineers objected over insufficient parking and impact on Normanby Road. Asked about going against this, Ms Griffiths said: “Given that it’s a town centre location, in our opinion in planning terms it’s a sustainable location with access to a number of public facilities. It’s on a bus route, with a number of public car parks within walking distance.”

The plans were submitted after outline planning permission had already been granted for a three-storey building with 11 apartments, three shops and a pub. Agent Lee Wardman said the scheme had been improved with two more shops, two more apartments and the restaurant and function room, without increasing the curtilage of the building.

He said: “The full planning application is a more detailed planning application. We feel that we have improved that design and made it a more viable design.

“We feel we have addressed all the consultees’ comments and the neighbours’ objections. Presumably there’s no objectors here today because we have addressed those concerns.”

Councillor Robert Clark, vice chair of the committee and member for Teesville, said: “It is in my ward. I’ve got no objections against it. It’s been an eyesore in Normanby for a number of years now.”

Debating the proposals, Cllr Malcolm Head said: “This site has been vacant now for a number of years. We’ve had several applications for it.

“It’s a commercial area of Normanby and I think it brings back a derelict site into a very good site for the future and I would probably accept it.”

Cllr Stephen Martin added: “I live in the area. It’s been derelict for God knows how many years. With all the regeneration in TS6 in general, there’s no reason why it shouldn’t really go ahead.”

Councillors voted unanimously to approve the plan, with conditions including a limit on the first floor terrace opening until 9pm.