AN INDUSTRIAL site in Otley is set to be redeveloped - but not as a mixture of shops and houses as first thought.

Ashfield Works, off West-gate, home of Jefferies Trans-port and Lunds Carpets, was once earmarked for the building of a mixture of houses, shops and businesses.

Town leaders had hoped that the site, which stretches to the River Wharfe, would make an attractive mixed development with the potential to bring in larger retailers.

But now, Leeds City Council, which two years ago suggested a mixed use including houses, shops and even a riverside bar, has said the site is not suitable for retail use.

Members of the executive board claim the site, which is also occupied by vehicle repair workshops, is too far from the town centre for shops.

A planning blueprint outlining the council's aims for the site is to be produced and put out to consultation with town and city councillors.

But town leaders say they are dismayed by the decision and hope to persuade the city council to change its mind.

Town councillor Phil Coyne, chairman of Otley Town Partnership, said he was confident that the decision could be reversed.

"This would be disastrous for the town. What we need there is a mixed development. One of the problems with Otley is the size of the retail units - they're too small and the frontage and size is not what is requested by retailers."

The site, which is earmarked in the partnership's town centre action plan for mixed development, would ideally feature a parade of shops leading to a range of businesses next to the river, added Coun Coyne.

Coun Coyne believes the Leeds Development Agency, the property arm of Leeds City Council, was behind moves to market the site for the most amount of money.

"This is in direct contradiction to the Market Towns Initiative. The trouble with the LDA is that it often acts like an estate agent and without any regard to the greater responsibilities of the council."

Coun Nigel Francis (Con, Otley and Wharfedale) said: "It is so stupid.

"Leeds would probably argue that there would be problems with traffic there if the site was to be redeveloped for retail use, but they didn't use that argument when Sainsbury's wanted to build in Bondgate."