A developer has submitted plans for 166 homes in a Mirfield site to Kirklees Council.
Land owners Park Crescent want to build the houses on Mirfield Moor, which lies just off Leeds Road, and insist it will bring benefits to the community.
But town councillors argue the land was not designated for housing in the first place.
Mayor of Mirfield Vivien Lees-Hamilton said at a town council meeting this week: “The designation of the land was originally made under the old UDP, but it has changed.
“First it was for industry, then it was a retirement community, and now it is homes.”
In addition to the 166 family homes, the plans also include commercial units, with vehicular access from Leeds Road.
Commercial agents Dove Haigh Phillips insist the current proposals will mean a third less land would be built on than if they had built a retirement community instead.
Mike Dove of Dove Haigh Phillips said: “The feedback we have received about these plans, from stakeholders, the council and local residents has been very useful.
“What we are proposing will bring a host of benefits to Mirfield. Not only will the residential element deliver much-needed new housing for Mirfield, but will also provide high quality commercial units suitable for light industrial usage, creating many jobs and will act as a catalyst for further investment in the area.”
Mirfield town councillors have said they will discuss it as an item at the next Mirfield Town Council meeting on Tuesday March 25.
The application has been submitted to Kirklees Council’s officers for consideration and is open for comments.