The site earmarked for Shipley's integrated transport exchange could be turned into flats and shops instead.

Critics say plans for the former Charlie Brown's car centre, on Otley Road, undermine the aims of the Airedale masterplan, which forms a blueprint for the area's regeneration.

The masterplan identifies the site partly as the location for a replacement bus station - with a multi-deck car park extending down the cliff face to the railway station - and partly as a base for Shipley College.

But Ogden Waller Properties, of Otley, wants to build three retail units there with 20 flats above. And a planning officer's report advises Shipley Area Planning Panel to approve the application because it accords with Bradford Council's Unitary Development Plan.

Councillor Simon Cooke, who sits on the Airedale Partnership which commissioned the masterplan, is annoyed that the scheme seems set to go ahead.

He said: "We have spent half a million pounds to create an Airedale masterplan and, the first chance the planners get, they undermine our ability to deliver it.

"The masterplan asks for a good pedestrian link from the railway station up through that site (Charlie Brown's) to the town centre and this proposed development prevents that."

Coun Cooke said there must be more debate about potential uses for the "critical site" before any development is allowed.

But town centre traders, who petitioned against the masterplan's vision of removing buses from Shipley Market Place, have welcomed the latest plans.

"We never wanted the buses to move out as shoppers would have to carry their bags across Otley Road," said outdoor market trader Gordon Peel.

He said the new scheme would be good news if it killed off the chances buses relocation.

Mike Osbourne, from consultants Arup, who drew up the masterplan, said: "We want to improve the whole of that area to make it more attractive and improve linkages between the town centre and railway station. If we develop in isolation, we won't achieve the strategic aims and the full benefit."

The Chamber of Trade does not believe the proposals will benefit the town centre - a claim disputed by the developers.

Dan Suggitt, investment and development manager for the applicants, said: "We want to do something vibrant and visually connected to the market square.

"It's a very underused site at the moment - essentially an eyesore for people driving along Otley Road, which many people see as the face of Shipley."

Mr Suggitt said his company was aware of the masterplan's proposals and was happy to discuss the site's role.

The proposal is to provide three lock-up shops totalling 630 square metres with 20 small and affordable flats above, constructed of coursed local stone.

Ten parking spaces are also proposed.

Planning officers consider the principle of mixed use appropriate. A decision on the application will be made by Shipley Area Planning Panel at 10am on Thursday at Shipley Town Hall.