CONTROVERSIAL plans to build 14 homes in a town centre look set to be approved.
The proposals would see the houses built on the former Alfa-Laval depot, in Quaker Lane, Northallerton.
Residents park their cars on the site and say the loss of space would cause huge congestion problems in the street.
Eighteen letters of objection have been sent to Hambleton District Council.
Local councillor John Coulson has also voiced strong concerns over the plans.
He said residents have parked on the site since the early 1960s and an established use has been created.
"Quaker Lane is not used as a short cut, as per the report, it is a main artery road," he said. "It is well used by people living on the east side of Northallerton and Brompton to commute to work and out-of-town shopping areas.
"Quaker Lane at high peak times has traffic standing from end to end."
Coun Coulson also said the street should be within the flood risk zone as the north end of Northallerton is the first to flood.
Planning officer Jonathan Saddington has recommended the scheme be approved.
He said: "Quaker Lane clearly has congestion and car parking problems. To help alleviate these difficulties, the authority has recommended a condition be imposed on any planning permission that requires waiting restriction to be installed in the public highway along the site frontage.
"Many neighbours have objected on the grounds that they currently use the site for car parking. While this practice removes parked cars from the highway, it is an informal arrangement and therefore could not be upheld as a sound reason for refusal."
Councillors deferred a decision on the plans at a meeting earlier this month after hearing there is no legal reason to refuse permission.
They were told if the applicant appealed against a rejection, the council could incur a penalty cost if it was found to have acted unreasonably.
The plans have since been amended to provide seven extra parking spaces.
The application will be discussed at a planning committee meeting in Northallerton on Thursday.
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