COUNCIL chiefs are backing expansion plans for a North Yorkshire industrial estate.

The last plot at Leeming Bar Industrial Estate was sold a month ago, but already a feasibility study into its expansion has been carried out.

Now local councillors are being asked to send a £1.7m scheme through to the detailed design stage and submit a planning application.

If approved, the land purchase would take place later this year and construction would get under way late next year or in early 2004.

However, the project is unlikely to be a money-spinner for Hambleton District Council, with an estimated return of only £30,000 more than the project cost.

The authority is looking at almost 20 acres of land north of the present estate and the three owners have already expressed a willingness to sell, providing the price is right.

It is envisaged that the scheme would create about 15 acres of land to be developed, excluding roads, landscaping and footpaths with vehicle access from Leases Road.

However, the planned upgrading of the nearby A1 to motorway status could have implications for part of the site, and this problem would need to be assessed before its purchase.

Part of the site, which houses a scrapyard at present, is also contaminated.

Hambleton's planning director, Steve Quartermain, said: "The costing and projected returns show that the project is marginal, with costs equally balanced against returns.

"The risks of proceeding are that the scheme could make a loss and deplete funds which could have implications for other planned projects. Costs may increase and returns may be lower than expected."

He added: "The risk of not proceeding is that there would be no serviceable land available at Leeming Bar to meet the development needs of local companies and help support local regeneration.