Plans to demolish the former headquarters of insurance giant Colonial Mutual Life and replace it with new homes are set to be approved this week.

Applicants Chatham Quayside Ltd and Medway Basin Two Ltd have reduced the number of planned houses from 270 to 253, and officers have recommended councillors give permission for the scheme.

But opposition and concerns remain.

Phil Taylor, chief executive of ArcelorMittal Kent Wire – part of a steel and mining company based at Chatham Docks since 1988 – has previously written to Medway Council to say the development will threaten jobs at the site, as he fears incoming residents will complain about noise from his site.

Planning committee papers also list other letters of concern, including one from a local resident objecting on the grounds of “loss of outlook” and “adverse impact on privacy”, and one from St Mary’s Island Residents Association outlining concerns over “density, parking, landscaping, materials and traffic flow”.

"While the development is a departure in terms of the designated employment nature of this site, it would be unreasonable to resist the loss of this site to a residential development." - planners

Chatham Maritime Trust, which currently owns the freehold of the site, initially voiced concerns over the density of the development, and while some of those remain the trust says the new plans are “moving in the right direction” and that “we are pleased to see that some account has been taken of our comments on the revised drawings.”

The planning papers conclude: “While the development is a departure in terms of the designated employment nature of this site, it would be unreasonable to resist the loss of this site to a residential development. The proposal is considered to be acceptable in terms of housing policy, traffic generation, environmental concerns and ecology.”

If approved, the developers have agreed to pay more than £700,000 to nursery, primary and secondary schools, and sixth form facilities in the area.

Further payments under a Section 106 agreement include £63,225 for access improvements at Great Lines Heritage Park, £34,587 for more user groups at White Road Community Centre, £68,935 for public realm improvements in Chatham Town Centre, and £118,231 for GP surgeries within one mile of the development.

The planning committee meets tonight at Gun Wharf, Chatham, 6.30pm start.