Residents living near the redundant International Wool Secretariat building in Ilkley have been urged to look at plans to develop the site into housing.
Details of proposed changes at the Valley Drive site are on show at Ilkley Town Hall.
There was an outcry last year when the boss of a bathroom fittings warehouse and factory revealed a plan to move his business there from Silsden. The idea was eventually dropped.
Now Newcastle-based housing developer Bellway Homes Ltd has applied for planning permission to build 78 homes, comprising 17 houses, 29 one-bedroom and 32 two-bedroom flats with access from Valley Road and Rombalds View.
Resident John Sayers, of Sunset Drive, objected to the bathroom factory plan on the grounds of increased traffic, noise and smells but welcomes the housing scheme, with reservations.
He said: "One of the concerns is that they seem to be putting lots of homes on there and I don't know if people want to live like sardines. This is a residential area and it would be difficult to object to houses after objecting to a commercial development."
Local politicians have broadly welcomed the plan, particularly if Bradford Council's housing development department can offer the money to provide starter homes for young couples on the site. They want affordable housing money which is due to be paid over by Ilkley College site developer Crest Homes - believed to be £400,000 - to be used on the site.
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