QUALITY supermarket chain Sainsbury's is about to submit a fresh bid to build a multi-million pound store in Otley.

If everything goes to plan it hopes to start work on the 20,000 square foot "community store" in Bondgate later this year.

In a letter to councillors and town leaders, Sainsbury's says it believes it has settled highways and design problems, which scuppered its first application submitted in August 1999.

The scheme will mean the relocation of Otley Fire Station and the Park Lane Centre next door, and the residential conversion of the semi-derelict old Tannery in Gay Lane.

Councillor John Eveleigh, leader of Otley Town Council, said he was broadly in favour of the scheme. "We carried out a full consultation the first time around and most of those affected were for the scheme."

He added that many people who were initially opposed to the plan had relented after speaking to representatives from the store.

"Certainly some traders did not like it, but quite a lot were in favour. On balance, I am broadly in favour of it. There need to be safeguards about times of deliveries, but it will tidy up an area of the town that could probably do with it."

Trevor Backhouse, president of the Otley Chamber of Trade, said the chamber would invite Sainsbury's to talk to traders.

"We've not discussed the application, but we were all in favour of it last time."

Mr Backhouse, owner of Patisserie Viennoise in Westgate, added he was in favour of competition for the town's other supermarkets, Safeway and Netto.

He also believed larger multiples, such as Argos, had successfully attracted people to the town.

But he warned that steps should be taken to ensure that the car park could be used by other shoppers and not just those using the supermarket.

Coun Gerald McGowan, chairman of the council's plans committee, said he was also in favour of the scheme.

"It is excellent news. The main thing is it will bring people into the town who wouldn't normally come. They will be able to park there and go to the other shops.

"I believe it will bring trade into the town, especially for shops along Bondgate, but also for shops along Newmarket and Kirkgate."

Coun McGowan believed it would not have a disastrous effect on shops in the town.

"I do my weekly shop in a supermarket and buy washing powder and things like that, but I also go to the specialist shops," he said.

He added he would be inviting Sainsbury's to talk at a future meeting of the plans committee.

Stephen Wood, development programme manager for Sainsbury's Property Company, said: "We are currently in negotiations with the council as well as consulting local stakeholders to hear their views.

"We would like to enhance the current retail offer in the town and make a commitment to the local community to provide quality, choice and convenience.

"Bondgate is an area of conservation and we are working hard to ensure the proposal is in keeping with the local environment."

Three years ago the supermarket withdrew an application to build a store in Bondgate because of the time it took to process it.

A spokeswoman for Leeds City Council said: "Planning officers from Leeds City Council have been in discussion with representatives from Sainsbury's regarding a planning application which was originally submitted four years ago.

"If reactivated, the application, for a new store on Bondgate, would go before a planning panel before any decisions are made.