PLANNERS will decide tomorrow if a historic Huddersfield building can be converted into student flats.

But it is a move which could cast doubts on a multi-million pound redevelopment.

Kirkgate Residence Ltd has asked Kirklees Council for permission to set up 23 apartments, a bar and a restaurant at the Palace Theatre.

But WD Huddersfield already has outline planning permission to demolish the historic building to allow a £40m expansion of the nearby Kingsgate Centre, which could generate 900 jobs.

In a report to councillors, Kirklees officials say both proposals can have planning permission.

The report states: “It is acknowledged that this site is part of a larger area that makes up the site proposed for the extension of the Kingsgate shopping centre.

“However, there is nothing within the Unitary Development Plan that ring-fences or safeguards this area for the extension of the existing Kingsgate shopping centre.

“It is feasible and not inappropriate for there to be more than one planning permission covering an area of land or building and for each of those to be satisfactory in terms of planning policy and any other relevant material considerations.

“To thereafter implement any particular scheme it is the responsibility of the developer to assemble the land required.”

The council’s Huddersfield Planning Sub-committee will decide tomorrow if the student flats plan can go ahead.

In 2008 the sub-committee rejected WD Huddersfield’s proposal to expand the shopping centre.

But the decision was reversed on appeal, meaning the company has outline planning permission for the extension.

The Kingsgate 2 plan involves demolishing the Palace Theatre, several shops on Cross Church Street, Oldgate House and The Parish pub.

The expansion would double the size of the shopping centre, making room for 22 more units.

The development would create up to 600 permanent jobs with another 300 generated by the construction work.

Last month the council’s ruling Labour cabinet publicly backed the expansion by revealing it had signed a memorandum of understanding with WD Huddersfield.

The company hopes to start work on Kingsgate 2 in 2014 and open the extension by 2016.

The council’s Business, Economy and Regeneration Team backs the expansion.

The group has written to the sub-committee urging councillors to refuse permission for the Palace Theatre flats proposal.

In a statement, the team said: “Successful town centres need to be vibrant places where people can live, work and socialise.

“Perhaps most important of all they need to provide a strong, diverse and attractive retail offer to put people into the centre.

“The provision of student and other types of residential accommodation is encouraged in the town centre. It is our view that such developments are preferably located in more secondary locations rather than in town centres’ prime retail core.

“Such projects have been successfully delivered in secondary locations including around St George’s Square and Northumberland Street.

“For the above reasons the application is not supported.”

Kirkgate Residence Ltd has asked for permission to convert five floors of the Palace Theatre into 23 apartments with 87 bedrooms. There would also be a gym and laundry for students in the basement of the building.

And the company wants to set up a bar and restaurant at the site on the corner of Venn Street and Kirkgate.

Huddersfield Civic Society is backing the plan to redevelop the Palace Theatre which first opened in 1909.

The group said it “welcomed the conversion of this landmark building and the restoration of the lantern and ceramic frontage on to Kirkgate.”

The Tiles and Architectural Ceramics Society also supports the plan because it would “enable the retention of existing ceramic facade and restore the building’s character for future generations.”

The council’s Huddersfield Planning Sub-committee will rule on the student flats proposal at its monthly meeting at Huddersfield Town Hall from 1pm tomorrow.