COUNCILLORS have delayed a decision about renovating a landmark building – against the advice of officers.

Simmy Sekhon had asked Kirklees Council for permission to convert the Palace Theatre into student flats.

W D Huddersfield already has planning permission to build an extension to the Kingsgate Centre at the site.

Councillors voted yesterday to delay a decision on the student flats plan to give time for a traffic assessment.

Mr Sekhon wants to set up 23 apartments for 87 students at the theatre on the corner of Kirkgate and Venn Street.

There would also be a gym and laundry for residents as well as a ground floor bar and restaurant for the general public.

W D Huddersfield already has outline planning permission to demolish the historic building – except the facade – to help make room for a £40m expansion of the nearby Kingsgate Centre, which could generate 900 jobs.

But Mr Sekhon – who noted that he “chose to work within the rules” – told councillors that W D Huddersfield had not bought the theatre when it had the chance.

“I purchased the Palace Theatre on November 1, 2011,” he told the council’s Huddersfield Planning Sub-committee.

“The property was on the open market for two years without any meaningful enquiry.

“It was available to anyone – including W D Huddersfield – who wanted to redevelop the building.”

Mr Sekhon added that allowing student flats at the Palace Theatre didn’t mean the shopping centre could never expand.

“Our scheme does not stop Kingsgate 2 and when they want to develop it, the Palace Theatre will be available,” he said.

Robert Halstead also spoke in favour of the student flats plan at yesterday’s meeting at Huddersfield Town Hall.

“There’s no reason why two planning permissions shouldn’t exist together,” he said.

“The grant of planning permission does not pre-judge any other scheme that may come forward for this site.

“The issue of which of these plans goes forward for is a matter for the owners.”

Mr Halstead added: “This scheme will breathe life into an area of town that could do with a bit of life injected into it.”

W D Huddersfield managing director Peter Everest spoke against the student flats proposal at yesterday’s meeting.

He told councillors that the Palace Theatre redevelopment could put jobs at Kingsgate at risk by causing traffic problems.

“This application should not be considered without a detailed traffic assessment,” said Mr Everest.

“This is one of the most traffic-intensive areas of the town which makes it more important that an assessment is carried out.

“The risks to the jobs and wellbeing of the town are simply too great not to defer the decision.”

After a debate, Crosland Moor and Netherton Labour councillor Molly Walton proposed deferring the decision to allow a traffic assessment.

A planing officer told councillors there was no need for such a study as the development would generate only two vehicle movements in the morning peak and three in the evening.

However, the sub-committee voted seven to four to defer the decision for a traffic assessment.

All six Labour members of the sub-committee backed the deferral, as did Holme Valley South Conservative Clr Ken Sims.

Fellow Tories Clr Adrian Murphy of Kirkburton and Clr John Cook of Denby Dale voted against deferral, as did Lib Dems Clr Nicola Turner of Colne Valley and Clr Linda Wilkinson from Almondbury.