A RUN-DOWN warehouse and store in a conservation area in Bishop Auckland town centre could be demolished to make way for homes.

A developer wants to demolish kitchen and bathroom retailer Homestyle Distribution Limited's warehouse and outlet, in Kingsway, and replace it with a block of flats.

The plans, which will be considered by Wear Valley District Council's development control committee on Thursday, have been submitted by Wight Developments Limited.

The company wants to build 14 flats in a four and a half storey L-shaped building, with ten car parking spaces.

Serious structural problems with the building have ruled out the option of a conversion scheme.

Neighbouring traders have raised concerns about the disruption that could be caused to their businesses, and are worried about the potential conflict between the flats' occupants and existing businesses, which include pubs and delivery yards.

Other businesses have welcomed the proposal to demolish the warehouse in the hope that a new building would smarten up the street.

Heather Reilly, director of Sculptures Spa, said: "Whether it was residential or retail premises, I would like to see that building demolished and replaced with new buildings to enhance the street, because at the moment it is a bit of an eyesore."

One of the main issues to be considered by councillors is the impact the proposal could have on the area's heritage, so council officers have suggested imposing conditions to protect the area's heritage if planning permission is granted.

The site backs on to a listed building in the Market Place, the old bank chambers, so the developer has altered plans and agreed to use a combination of render, stone and brickwork for the walls, and a natural slate roof to blend in.

The plot lies near former medieval courtyards and alleys, so archaeology experts from Durham County Council have asked the district council to ensure the site could be investigated for relics if demolition is approved.

Because of the small number and central location of the proposed flats, which are not likely to be family homes, the council would not ask for a contribution towards play facilities.

Instead, planning officers consider highway improvements, which would accompany the development, to be a substitute community benefit.

The officers have recommend approval of the scheme.