A £10 MILLION scheme to demolish a York office block and build a new hotel could be given the go-ahead this week.

Plans have been drawn up to bulldoze Holgate Villa, which has been described as an “eyesore”, and replace it with a 95-bedroom business, potentially creating between 30 and 50 jobs.

The proposed scheme by The Villas Venture will go before City of York Council’s planning committee tomorrow and officers have recommended it for approval despite concerns over the loss of offices currently housed in the Holgate Road building.

It dates back to the 1950s and the firm behind the project has said refurbishing it would not be economically viable.

The company said it was in talks with three major hotel chains, ranging from budget to boutique operators, to run the business if it wins planning approval.

In a report on the plans, Jonathan Kenyon, the council’s development management officer, said: “The proposed building would improve the appearance of the area, replacing a building which appears out of place with one which would be more in keeping with the area.

“It would also be energy-efficient and environmentally-friendly.

“There would not be an unacceptable impact in terms of highway safety or the amenity of local residents.”

The report also said Holgate Villa had originally been designed to be occupied by a single business, but lack of demand had led to it being let to a string of smaller occupiers and there were plenty of other options for accommodation elsewhere in York.

Seven objections to the hotel scheme have been sent to the council. They claim the hotel’s design would be “unduly large and over-dominant” and disturb local residents because of its 24-hour use. They also said it would overshadow neighbouring homes and increase congestion in the area.

If the scheme is granted permission, it would be the latest addition to a hotel-building boom in York which has seen the opening of the Cedar Court Grand in Station Rise and approval given for hotels in Toft Green and Walmgate.

Plans have also been unveiled for a 70-bedroom hotel next to the Vue Cinema at Clifton Moor.