The oldest building in Trethomas could be demolished to make way for flats.
A three-storey building with 25 apartments and 13 parking spaces could be built where the Ty yn y Pwll pub, on Newport Road, currently stands.
The building would contain 18 one-bedroom flats, three one-bedroom adapted flats and four two-bedroom flats.
A pre-application consultation has been put forward by Asbri Planning, on behalf of United Welsh Housing Association, which intends to submit an application to Caerphilly County Borough Council.
The pre-application consultation will close on Wednesday, August 12.
The Ty yn y Pwll, known locally as the ‘Pyke’, used to be the toll house where tolls were charged for the use of the road between Caerphilly and Newport.
In 2016, the council’s planning committee approved an application from Pontcanna Development Ltd to demolish the pub to make way for a 32-bed care home.
A previous plan to turn the disused pub into a community centre collapsed after the charity behind the scheme could not secure funding.
Connections Community Hub (CCH) agreed to purchase the building in 2014 and had plans to transform it into a café with a difference – a multi-functional hub for the whole community to use, access services and develop ideas.
Plaid Cymru councillor Daniel Llewellyn, who serves on Bedwas, Trethomas and Machen Community Council, urged residents to express their concerns with the developer and said: “I agree that there is a need for affordable housing for young people, but this is the wrong scheme for Trethomas and in the wrong place.”
Trethomas resident Marc Hubbard described the building as “part of the fabric of the village of Trethomas”.
He said: “I know this is not a listed building but this means that a sympathetic conversion to a community centre might be more in keeping both architecturally and with the needs of the community.
“The plan for a three-storey block will overwhelm the current skyline of two- storey, turn of the 20th century, shops and houses.
“Parking is already an issue for residents but they only plan for 13 spaces for 25 residents and that’s not counting visitors to the block.”
But Labour councillor Derek Havard, who represents the Bedwas, Trethomas and Machen ward on Caerphilly County Borough Council, said he is “glad something is finally being done” with the building, which he said has become dilapidated, ‘rat-infested’ and the target of vandalism.
Cllr Havard said: “I understand what is being offered is controversial, but we desperately need housing in Caerphilly and I think we should be looking at this with an open mind.”
A spokeswoman for United Welsh said: “We recognise the prominence of the site of the building, which has been sadly left vacant for a number of years and fallen into a state of disrepair.
“This development will provide much needed high quality homes for older people, with benefits for Trethomas and the surrounding communities.”
Anyone who would like to make representations on the proposals can email email@example.com
Additional reporting by the Local Democracy Reporting Service