PLANS to demolish a town centre shop and engineering works in Petersfield and replace them with 32 flats and new shop space are being studied by planners.

The proposed site behind the Jacobs and Hunt building on the Lavant Street and Charles Street junction is home to Tews Engineering, whose entrance lane is about 20 yards from Petersfield railway station.

Next to the lane is the Equine and Country Essentials store, which will be replaced with a new shop if the development is approved by the South Downs National Park Authority.

Tews director of 25 years Malcolm Hankin, and Kebbell Homes are behind the plans for 31 two-bedroom flats and one three-bedroom flat, plus two shop spaces, on the site.

Tews opened in 1970 and a narrow lane on to Charles Street and the Lavant Street exit are the access routes to the proposed flats.

However, Charles Street resident Quentin Jay said: “More vehicles using the narrow access to the flats will increase the danger of collision with vehicles or pedestrians in Charles Street.”

An environmental report from July 2015 that says land around the engineering works is contaminated, has also provoked concerns.

Simon Downs, of East Hampshire District Council’s environmental team, said: “The report concludes that without further intrusive investigations, the site isn’t suitable for residential use.”

The proposal also doesn’t meet the council target of new developments being 40 per cent affordable homes.

But WYG consultants says in talks with Petersfield Town Council it was accepted the site was an eyesore and that any redevelopment was a chance to enhance a gateway site in the town’s conservation area.

It was also agreed that a similar area shop space should be kept as part of the proposals for the site.

Equine and Country Essentials shop owner Adam Parry-Jones said: “We will either move into the new shop, or relocate into another one in Petersfield. We are in the town for the long term and have no intention of leaving.”

National park planners said the earliest the proposal would be decided was mid-April, but it could be “much” longer before a decision was made.