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A bid has been launched to transform empty Sports Direct and USC stores - as developers say "the era of large shops is in decline".
The Ramsgate site the national chains previously occupied has sat vacant since August, after the businesses upped sticks to The Link retail park next to Westwood Cross.
But now JDP Limited has lodged plans with Thanet District Council to split the ground floor of the Queen Street building into four separate commercial units, and to create a gym in the basement underneath.
Bosses from the firm claim the scheme is the type that will help ensure the "survival" of the high street.
Documents submitted to the local authority state: "The era of large shops is sadly now in decline.
"In order to survive as a commercial shopping centre these large buildings must seek alternative sustainable uses.
"It is therefore necessary for the retail aspect to reduce in size and find more sustainable uses that will help them become more flexible in these challenging times."
JDP believes the new businesses will employ 20 people in all.
It also wants to add a four-storey extension to the site to allow it to build 31 flats, 14 of which will have one bedroom and the remainder two.
Drawings show the gym will be equipped with a weights area, 10-metre track, spa, massage room and flotation tank.
The developer wants Blitz Training Academy to run the sports centre, the reception for which will be inside one of the commercial units facing Queen Street.
"The property is currently divided into a self-contained shop with two units located at ground-floor and first-floor level," the documents add.
"Prior to this the property was used as a furniture sales store, which ceased trading in about 2004.
"The shop was taken over by Sports Direct, and the property was then sub divided into two units with shared facilities.
"The developer has approached the Blitz Training Academy to operate the commercial gym. This operator has a proven track record."
Blitz is also said to have secured a contract with the district council to provide health and fitness facilities in the area for minority groups.
However, locals have lodged objections to the plans.
The Ramsgate Heritage Design Forum "fundamentally object" to the proposals, claiming the layout of the flats needs to be re-drawn to create "fewer but better-proportioned units".
Meanwhile the town council has called for the project to be refused, as members believe the bedrooms in the larger homes will be "too small".
JDP says a "dedicated play space" will be added to the ground level, and that 30% of the properties will be allocated for affordable housing.
A similar scheme was given the green light by the local authority last year. However, on that occasion JDP wanted to build 18 one-bed and 13 two-bed flats.