An application to convert a historic building in Eldwick into a base for a growing Internet and multi-media company has failed.

But Eldwick First School will be preserved by developers after Bradford Council approved a scheme which retains the original Victorian structure.

Businessman Stephen Brabbins, of Digital Image, wanted to buy the building on Otley Road and said he was disappointed his offer had not been accepted. "It would seem that providing £3 million of jobs over a ten-year period cut no ice with Bradford Council whatsoever. It is now almost certain I will move away from Eldwick because there is nowhere in the village or in Bingley so I will be looking at Leeds."

However Mr Brabbins, who had support from people in the town for the proposal, said his reason for putting in the offer was two-fold and he was pleased the school, which dates back to the 1870s, would be saved.

The Council received 25 offers for the site which was sold in two lots, some of which were from property developers who proposed to raze the building to the ground to create more housing.

Councillor Chris Greaves (Cons, Rombalds) had supported the idea of using the former school building for a commercial venture. "I feel we have got half a loaf.

''I am very pleased the building is going to be retained because it does add to the street scene but I am disappointed it is not going to be used commercially because long term that would have been better for the village."

A spokesman for the Council's asset management department said details of the successful tenders were confidential.