COUNCILLORS have backed plans to revamp a derelict site on Portland with a £12 million housing scheme.

The government’s Homes and Communities Agency (HCA) is behind proposals to develop neglected parts of Osprey Quay that it owns, including the historic Royal Naval canteen from the air station days.

It wants to finish off what was originally started by Sutton Harbour, which pulled out of the Castle Court regeneration project in 2008.

But instead of progressing with the original scheme, the HCA wants to replace it with one containing more housing – with no affordable units – and dropping the supermarket and industrial unit elements to make it more economically attractive to developers.

New plans, lodged with Weymouth and Portland Borough Council, would see the old canteen retained and transformed into 27 flats, plus 40 homes built on land next door.

The HCA says it makes use of a vacant site, safeguards the future of the old canteen and will ‘kick-start regeneration’ of the wider area.

The agency also claims the canteen conversion would provide a ‘lively backdrop’ to Liberty Square and enhance views from Portland Castle.

But a report put before Weymouth and Portland Borough Council’s planning and traffic committee highlighted objections to the scheme from Portland Town Council.

The report said: “The town council welcome the revised scheme for developing the canteen but think that the introduction of more houses in the area would cause infrastructure problems.

“Councillors are also concerned about flooding from the east due to the deterioration of the breakwater.”

At the committee meeting, borough councillors raised concerns over the site’s flood risk but were reassured that the HCA completed a thorough submission and the scheme was acceptable.

Cllr Paul Kimber said: “This building has been dormant for 20 years at least and it’s great to see it getting back to some sort of future.

“We have a tourist area with Portland Castle and we need to brighten up the whole aspect of that area of Underhill.”

Cllr Sandra West said the developers have been sympathetic in terms of keeping the existing site and it would be great to see the area come alive again.

She added: “I live near this site and go to Castletown a lot; I’ve seen the state it’s in.

“However, I’m concerned there is no affordable housing on the open market; there needs to be some sort of local housing for local people.”

Cllr Margaret Leicester said she was concerned that developers were not taking into account the infrastructure needs of people going to live there.

Cllr Kevin Brookes however said the plans would be a ‘good use’ of the site.

Borough councillors recommended conditional approval of the plans following a revised Section 106 agreement.