A £2.5m library and sheltered flats complex is planned for Stokesley, to replace Springfield House residential home and the Manor House library.
North Yorkshire County Council this week announced plans for a modern development at North Road, the site of the highways depot. Broadacres Housing Association is involved in the development.
The council said a sheltered scheme of one and two-bedroom flats for elderly people was a better alternative to residential care homes.
Services similar to those in care homes would be available 24 hours a day and flats would provide accommodation for even the frailest of residents.
Neil Revely, of North Yorkshire social services, commented: "The care in our current residential homes is second to none, but the buildings no longer meet modern requirements. This scheme will allow us to meet the changing aspirations of older people, many of whom prefer a high level of independence. We will still provide the same level and standard of care.
"All existing residents will have the opportunity to move to the new facilities and the county council is eager to discuss proposals with local people.
"We especially want to keep Springfield House residents, their families and staff informed."
Depending on consultation and planning procedures, building work could begin in the next 12 months.
The scheme is subject to a funding decision by the Housing Corporation, a national quango which approves expenditure and monitors the activities of housing associations. Its decision is expected within weeks.
Coun Caroline Seymour of Stokesley generally thought the plan was a good idea. However, she had some concerns about providing for old people with special needs and was disappointed that the Manor House and Springfield House may no longer have any civic role.
"We had a lot of meetings and tried to retain them for community use. Unfortunately, nobody came forward with sustainable ideas. I imagine these buildings will probably be used for businesses or housing."
She thought new sheltered flats would be classed as affordable homes, so any new private homes at a redeveloped Springfield or Manor House would probable be aimed at upmarket buyers.
Stokesley Community Care Association is based in premises behind the Manor House and Coun Seymour added: "The association knows about this plan. It has a lease from the county council and will not be homeless. It may move to a new complex in the future."
She was surprised at the timing of Wednesday's announcement, because the plan had not been finalised by the Cabinet.
Broadacres spokesman Paul Lightfoot said the association was delighted to be providing the next generation of care provision
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