THE controversial £100 million development scheme to save the King Edward VII Hospital at Midhurst has overcome the first planning hurdle, by the narrowest of margins.

Two sets of plans for the Midhurst site were recommended for approval by Chichester District Council this week, by a single vote.

Due to their highly contentious nature though, both proposals have been referred to full council for a final decision.

The first proposal was for a new 134-bed hospital building, and 108 town houses and maisonettes.

An underground car park, multi-purpose community hall and fitness centre were included in the scheme.

Developers Lincoln Holdings will also give a £3.6 contribution to CDC for affordable housing, education, transport, and libraries in the area.

The development had been recommended for refusal by council officers, on the grounds that it would be an unacceptable intrusion into the Area Of Outstanding Natural Beauty.

The second application was to convert the existing 100-year-old Grade II listed hospital into 219 flats and three combined live/work units.

It had been recommended for approval.

After a four-hour meeting on Tuesday morning, members of the area development control committee north voted six to five in favour of both.

A spokesman for the King Edward VII Hospital said that staff were relieved and pleased.

"Obviously we're pleased - we couldn't have expected better from this meeting," said Tricia Saunders. "But it's the first of three stages."

The applications can't go on next Tuesday's full-council agenda due to time constraints but it will be raised as an urgent item. The council will then hold a special meeting to make a final decision, but a date has yet to be set.

"It was a very close decision today, we can't take anything for granted, but we do have a lot of support," Mrs Saunders said.

"People realise the importance of the application - it's either a hospital and a development or just a development, that's the choice."

With so much still hanging in the balance, Mrs Saunders isn't ready to say that the hospital has been saved just yet.

"It's business as usual," she said. "We have overcome one hurdle though, a big hurdle."