Plans for up to 170 new houses in Catterick Garrison that were rejected last year will go back before planners next week.
The Ministry of Defence wants to build the new estate on greenfield land off Horne Road, opposite Somme Barracks.
The application is a re-submission of plans that were refused by members of Richmondshire District Council’s planning committee in June last year.
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Although officers had recommended that the scheme be refused, councillors said they were not convinced that there were no brownfield sites in Catterick Garrison that could accommodate the scheme instead.
They added that they were concerned there was not adequate infrastructure in place for roads, public transport, foul drainage and school places to be able to accommodate the scale of development proposed in this location.
Despite this refusal, council planning officers the latest application is also recommended for approval.
The report to go before councillors next week states: “Whilst outline planning permission was refused to a very similar proposal in June of last year, the fact remains that this proposal is not in conflict with the provisions of the Development Plan.
“There are no material planning considerations that can justifiably maintain a rejection of the proposal.
“There is no policy requirement which precludes the development of a suitable greenfield site and no policy requirement for a sequential assessment of alternative brownfield sites.
“Nevertheless, it has been confirmed that there are no other sites which are available to meet this current need.”
Colburn Town Council has raised a number of concerns about the application.
The authority questions whether the MoD has provided good evidence that there are no brownfield sites in the area that could better accommodate this type of development in a more sustainable way.
The council also says the development would put a further strain on NHS services in the town, adding that it receives constant complaints from residents unable to get doctors’ appointments in suitable timeframes.
More than 30 members of the public have objected to the latest plans.
They say there are better places for the development in Catterick Garrison.
They also raise concerns about the impact of extra traffic on Tunstall.
