Up to 400 homes could be built on Staney Hill if plans are backed by the council next week to give planning permission in principle.
Shetland Leasing and Property Developments Ltd (SLAP), along with Hjaltland Housing Association are seeking approval for the 29 hectare site at North Staney Hill.
SIC planners have recommended the application be approved, subject to conditions and the papers will go in front of the council’s planning committee on Tuesday.
SLAP is pleased with the response from SIC planners and said the proposals would “lead to much needed new homes being built in Lerwick”. The company held a pre-planning application, public consultation event at the Clickimin in March last year, which was attended by 52 people.
They said this was mainly people from neighbouring properties and it has since “engaged widely and openly with a range of stakeholders including Lerwick Community Council, the Scottish Environment Protection Agency and Historic Scotland.
“Concerns on issues such as the need for new tree planting, open space, public access, traffic, drainage and potential visual impacts on the setting of the scheduled Clickimin Broch monument have all been fully taken into account,” SLAP said.
Lerwick Community Council is in favour of the plans, though community councils in Northmavine, Yell and Dunrossness have objected.
SLAP chairwoman Susan Groat added: “We have worked closely with planning consultant Alan Farningham and his team and with the SIC’s planning department to ensure that people’s concerns have been satisfactorily addressed.
“We are naturally pleased that the application is being recommended for approval at the next planning committee on 10th March.
“Lerwick is in need of a significant number of new houses and a strategically-placed site such as this with a capacity for 300-400 houses will help to ease some of the demand for housing.”
More on this story and other social housing plans in Friday’s Shetland Times