Revised plans to transform part of Inverurie Loco Works into a hostel will go before councillors this week.
Malcolm Allan Housebuilders first revealed plans to create two hostel-style accommodation blocks, mainly for offshore workers late last year.
In February, councillors approved only one of the applications, prompting the developer to resubmit their proposals for the second one – slashing the size from 37 to 20 bedrooms.
But the application was again rejected by the Garioch area committee in June, and now an even smaller hostel block will go back before members on Tuesday.
The new accommodation block would have 11 rooms.
The area proposed for conversion is currently ground floor office space.
The money raised from the rooms would be used to fund the new Garioch Heritage Centre within the site, which is not yet open.
The B-listed Loco Works site was first established in 1903, and the site has undergone a period of redevelopment throughout the past few years.
The site was earmarked for 150 houses, employment, community facilities and retail under the Aberdeenshire Council local development plan (LDP).
The application has been met with five objections from locals and has been opposed by the Inverurie Community Council – with worries raised around parking and noise should the plans be approved.
But planning chief Stephen Archer is urging councillors to approve the scheme, and said: “The intended use of the building is for overnight accommodation aimed at workers requiring short-term accommodation in the area.
“It is acknowledged that the proposal offers a type of development and accommodation which is arguably in demand within
Aberdeenshire and is located in an area which has a number of benefits in terms of accessibility and access to services and facilities.
“The type of development proposed is entirely compatible with the town centre location.”