A DECISION whether to demolish a York office block and build a new £10 million hotel in the city has been delayed.

The plan 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 was deferred by councillors at a meeting on Wednesday night.

The proposed scheme by The Villas Venture had been recommended for approval by officers despite concerns over the loss of offices currently housed in the Holgate Road building.

But after representations from local residents, councillors felt there had not been enough consultation and the decision was put off till a future planning meeting. Residents claim the hotel’s design would be “unduly large and over-dominant” and disturb local people because of its 24-hour use. They also said it would overshadow neighbouring homes and increase congestion in the area.

Dave Merrett, Micklegate ward councillor, said: “The applicant agreed to the deferral so that proper consultation could be carried out, but he did say that he could see no reason why the application should be turned down and he’d appeal if that happened.”

Coun Merrett said some of the current organisations with offices in Holgate Villa have two-year leases that would have to run out before any work could start.

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

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.