Flaxby Park Ltd is proposing more than 2,700 new homes, retirement village, hotel and other facilities on a disused golf course off the A59 and A1.
It is believed to offer a boost for both areas compared with Harrogate Borough Council’s recommendation for the Green Hammerton and Cattal area.
The Harrogate Chamber of Trade believes it would support recruitment and retaining of staff, many employers currently struggle due to the distance they travel and being unable to buy houses in the district.
Sandra Doherty, Chief Executive said: “Every business in town will tell you that there is a problem with getting staff who can travel here or afford to buy property. “The Green Hammerton site appears to be too far away and this offers a complete package. At the same time the hotel could support both the retirement village and offer somewhere to stay for visitors to the science business park that is being developed nearby.”
Approval was given earlier this year for the science park near the junction of the A59 and A1 (M). Close to Â£85 million will be put towards the construction.
Although not opposing housing in the Green Hammerton and Cattal area Mrs Doherty said it should be a different kind of development.
News of a potential hotel being developed outside the centre of Harrogate has been welcomed by the Knaresborough Chamber of Trade.
Visitors staying close to the town and outside of central Harrogate is said to offer a welcome opportunity for bolstering trade in the town. Stephen Teggin, President said: “I think that the hotel would be an absolute boost for Knaresborough, many hotels in Harrogate are often full even though there are so many of them.“This could help Knaresborough gain a bigger piece of the finance that is generated by vistors in the conference trade.”