MAJOR plans are on the drawing board to breathe life into derelict buildings in the centre of Petersfield. But there were concerns this week that the proposals, to turn the former milk processing plant on Station Road into flats and houses, would add to the growing list of commercial buildings vanishing from the town. The run-down site, by the level crossing, has become an eyesore through years of neglect, with Drayton House boarded up and the next-door outbuildings falling into disrepair. Now developers want to restore the former hotel as offices, while the old Crash Repairs garage that borders it, would be bulldozed and turned in to six flats. Behind the two sites, developers plan to build terraced housing with car parking. But this week there were fresh concerns that the proposals in their current state could deliver a body-blow to trade in Petersfield. The former mayor of Petersfield, John Holt, said the area desperately needed a facelift, but he was concerned about losing industrial space to yet more residential units. He told The Herald: "It needs a lot more thought than this. The more housing that is put in, the more strain there is on the infrastructure of the town. "And if they were planning to put me in a flat by the railway track, I'm not sure I'd like it." Mr Holt added that residents would find it hard to access the site when the level crossing was down. "I would have preferred to see the site retained for industrial use, especially when there are too few such sites left in the town," he said. "There is supposed to be someone at East Hampshire District Council whose job it is to encourage industrial development in the town, but I don't think they are very successful. "It is a big area on Station Road and it would be so much better as a commercial site. "Having said that, the area in its current state is an eyesore and it has been for years." The future of the site was thrown into doubt in November 2004, when Dairy Crest announced it was leaving the town. The premises was put up for sale and it was feared by many town leaders that it would be a nail in the coffin of the commercial heart of Petersfield. Experienced town councillor Ken Hick, who recently published a town guide, said the industrial units behind Drayton House had been used since the 1930s as the milk collection depot for large areas of the south of England. At one stage, he said, the depot provided much of London with its supplies of milk. But development on the site now, he warned, could have a detrimental impact on the town - especially on traffic congestion and parking. He said: "I'm so pleased they want to return Drayton House to its former glory, as it is a handsome building. It was built in the early part of the last century. "It is bound to make commercial sense to build housing on the Dairy Crest site, but there seems to be a rush towards constructing as many buildings as you can and this usually ends up being to the detriment of the town and what it stands for." Mr Hick added: "In theory, you would like to think the terraced houses would be low cost, giving young couples a chance to buy a house in the town. However, you end up with a lot of boxes if you are not careful. "But it has to be thought of as a good thing, bearing in mind that the site is in need of development." A spokesman from East Hampshire District Council said that planning officers would now decide whether or not to recommend the scheme to councillors. The proposals would then go before councillors at a meeting of EHDC's south planning committee in August.