A SAINSBURY'S supermarket could still be built in Otley, it was revealed this week.

The company, which owns the old tannery in Gay Lane, is also considering converting the derelict building into quality apartments.

The up market supermarket chain is currently in talks with other property owners close to the site and expects to make an announcement in the next month.

A spokesman confirmed that Sainsbury's was looking at different options including building a store and converting the former tannery into homes.

"At the moment we are exploring what the possibilities are in Otley. We want to come to Otley and we want to put a plan together and if we can't build a store, we'll develop the tannery."

The former tannery, which is not listed, is currently empty and boarded up.

"The tannery will probably be developed as residential, it would make a great apartment building," said the spokesman.

Councillor Nigel Francis (Con, Otley and Wharfedale) said he had mixed feelings about a Sainsbury's store in Otley.

"I suppose I would come down in favour of it, but I would have to be satisfied that any potential traffic problems were sorted out and that there wouldn't be any adverse effect on other traders in the town.

"On a positive side, it would bring people into Otley to shop and would provide competition for Safeways."

Coun Francis added he would welcome the development of the old tannery.

But he did have some reservations about what sort of homes it might be converted to.

"I can see it being turned into smart apartments for the higher end of the market and those sort of flats are just not affordable for people in Otley."

Sainsbury's pulled out of its plans to build a multi-million pound 20,000 sq ft store at Bondgate in April 2001. It had put the plans - which also included the residential conversion to 32 apartments of the tannery - in a year before and had become frustrated at the length of time the application was taking to be processed by Leeds City Council.

At the time, councillors had expressed concerns about the choice of building materials and the traffic implications.

More than 40 Otley people had objected to the scheme, but councillors believed that the combination of the store and redevelopment of the old tannery would have been a boost to the town's fortunes.