The deadlock over the proposed development of a Dales-style village on the former Middleton Hospital site could be broken by early next year.
A plan to build 103 houses on the site will come under the scrutiny of a Department of the Environment inspector on November 24.
Addingham-based builders Clays have appealed to the DoE over Harrogate Council's failure to make an official decision over the plan.
But a spokesman for Harrogate planners said the local authority's hands had been tied by the Department of Transport.
Because the development would have an effect on the level of traffic on the A65 trunk road, transport officials issued an order preventing Harrogate planners from making a decision until they had carried out further studies.
In preparation for Clay's appeal, the plan was considered by Harrogate's planning committee in May. Councillors determined that if they were not prevented from making a decision by the DoT order they would reject the plan anyway because it does not comply with the original planning brief. That envisaged between 60 and 80 houses on the site, which is owned by the Durham-based NHS Executive.
Both the original Harrogate Council planning brief and the proposal by Clays have been greeted with objections in Ilkley.
The site lies outside the town boundary, but residents, while paying Council Tax to Harrogate, would want to take advantage of services provided by Bradford Council in Ilkley.
While the former hospital site is not strictly Green Belt, many objectors cite the negative impact of any housing on the Nidderdale Area of Outstanding Natural Beauty.
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