The former Lounge Cinema on North Lane, Headingley, which closed in 2005 despite a campaign to keep it open, was at the centre of protests again when the owners obtained initial planning approval to turn it into shops, offices and a restaurant.

A residents' group branded it a "mish mash" so Headingley-based property company ATC Properties yesterday revealed "simplified" plans for the site.

A spokesman said the new plans would lessen the impact, with a reduction in scale of the proposed building at the back and changes to the design of the foyer and frontage to retain the style of the former cinema and neighbouring buildings.

The site will include a restaurant on part of the ground and first floors, office space on first, second and mezzanine floors, basement parking and ground floor retail units.

An external smoking terrace will be created at the back of the development.

Existing parking spaces behind The Arc on Ash Road will service the restaurant and retail units.

As part of the initial planning approval requirements, ATC Properties has committed to contributing £10,000 to be used by Leeds Council for the refurbishment of the Headingley Community Centre opposite the Lounge.

A further £10,000 is to be used for improvements to the Rose Garden area, located directly in front of The Arc at the junction of North Lane and Ash Road. Additional money has also been allocated for public transport improvements.

A company spokesman said: "Discussions have already taken place with building contractors, so, once planning is approved, activity will start on site by the end of the year, with completion anticipated in December 2009."

David Barrass, managing director of ATC Properties said: "We worked long and hard on the initial plans and the planning application.

"During the planning process the scheme was altered and varied somewhat.

"This revised application is very similar to the existing consent but the office area has been redesigned making it easier to build. The ground floor still retains a substantial retail element, with a restaurant use in the former foyer area.

"We are confident that our new proposals will significantly enhance this area of Headingley. Although we have not commenced formal marketing of the development, we have already received a significant amount of interest from several restauranteurs, local businesses and retailers, who are all keen to discuss the potential opportunities."

The revised plans can be viewed in Headingley Library in North Lane.