Neighbours are keen to see a revamp of the former Stanways Garage, in Lytham but councillors are being recommended to turn down Kensington Developments plans to turn it into a housing estate.
The 34-home scheme had won the support of local businesses keen to see the site brought back into use, but concerns were raised over the state of access roads and the loss of employment land.
And now those key factors could see members of Fylde Council’s development management committee turn down Lytham-based Kensington’s plans for the Preston Road site.
A report due to go before the committee on Wednesday states: “There is a shortage of urban employment sites and existing sites, such as this one, should be protected to allow opportunities for future economic development.
“As a secondary issue the application site is to be accessed from Boundary Road which is a private road that is in a poor condition.”
Kensington’s plans are to build 16 mews houses and 18 apartments on the land, which sits between the current Stanways garage and McDonalds.
Coun Brenda Ackers, who represents the area on Fylde Council, said: “I agree it is an eyesore and we could do with it smartening up, because my ward has done brilliantly recently for looking smart.
“It would be nice to have something there and I do know a lot of people who are in favour of it, and I would not be surprised if the councillors vote for it.
“Boundary Road is messy but there are already a lot of businesses down there.”
The plans are supported by Stanways - which describe the site as a “total eyesore which degrades this part of Lytham” - and commercial business Statestrong Ltd who see the plans as a good way of improving the area.
But businesses Laserscan and Tangerine Group have objected because they are concerned about the road and the impact a residential development could have on businesses.