THE first phase of the controversial Caltongate development is expected to get the go-ahead from councillors within days after winning the backing of planning officials.

The developers hope to start work within months on one of the less contentious parts of their plan, including the building of 36 affordable homes and a new hostel for the homeless.

The first stage of building could also include a new community centre, shops and offices, and improvements to the walkways linking Calton Road with Regent Road. The new homes would be built on two sites either side of Calton Road.

Campaigners fighting the £300 million development have called on the council to put a decision on hold until it can rule on the scheme as a whole. They plan to protest at the City Chambers on Wednesday to make their point.

Developer Mountgrange wants to build 200 new homes, a five-star hotel and conference centre, office blocks, cafes, bars, restaurants, and a new public square on the site of the old New Street bus depot.

But there is huge opposition over proposals to knock down a tenement block on the Royal Mile to create a new through route to the proposed public square.

The developer has also insisted it needs to bulldoze two listed buildings, the former Sailor's Ark hostel and the Canongate Venture building, to make way for a five-star hotel and conference centre.

Under the plans for the section of the scheme due to be discussed by next week's planning committee, the developers have pledged to build a new day centre for homeless people on the site to the north of Calton Road. It would be built on the ground floor of a building housing eight flats. Another block would house 12 flats with shops or offices on the ground floor.

An old warehouse on the south side of Calton Road would be demolished to make way for 16 homes, with shops and offices on the ground floor, as well as a site earmarked for a proposed community centre that the developers have promised to build as part of the overall scheme.

Old Town Community Council spokeswoman Julie Logan said: "There is no way this planning application should be taken in isolation like this. It's vital that the council considers all the planning applications together.

"Our main problem with this particular application is that Mountgrange are trying to move affordable housing right out to the edge of their development, down Calton Road.

"We've no problem with the delivery of affordable housing, but it shouldn't be shunted as far away as possible from the Royal Mile, on the cheapest part of the site."

Historic Scotland has warned the council that the proposed buildings will have a "considerable impact" on views of both the Canongate Kirk and its historic graveyard.

But the agency stopped short of objecting to the planning application and instead urged the council to ensure everything possible is done to help the new buildings blend into the historic backdrop.

Mountgrange said although the bulk of the affordable houses would be on Calton Road, others would be built on Market Street. Alan Henderson, the council's head of planning, said:

"The quality of the urban design solution will enhance the conservation areas, the World Heritage Site and the setting of listed buildings."

Will the Caltongate development be good for the city?
Scott Clark, 39, IT manager, Parkhead Ave: "It's a stretch of the Royal Mile that could do with an injection of something or other. It's a bit dark and dingy down that way and could definitely do with sprucing up."

Tom Loughray, 71, retired, Muirhouse: "I would say it's the wrong thing to be doing. The Royal Mile is the Royal Mile and I think Edinburgh is getting polluted with things like hotels. We seem to be catering too much for tourists and forgetting about local people. They're building everything but houses."

Jack Fraser, 64, electrician, Musselburgh: "We should be trying to keep some of the old buildings in Edinburgh instead of all these glass monstrosities."