Birstall’s public toilets could be demolished to make way for a shop and flat.
Kirklees Council placed the outline application to develop on the Market Street plot, which as facilities closed on December 31.
Prior to that, they had been maintained for two years by a working partnership between village councillors and the Birstall Chamber of Trade.
Chamber chairwoman Anne Thompson said: “We are of the firm view that it’s completely short-sighted. They are flogging off assets that, once they are gone, they are gone. What are the council going to do in two years time when they haven’t got these to sell off?”
Mrs Thompson feels that leasing the building would be more beneficial, and thinks that the money gained from a potential sale should go back into the Birstall community.
“If they sell it off on the cheap, then that really would be a smack in the face for the people of Birstall.”However, she accepted that a new shop could be a positive development for the village.
A supporting document included with the application read: “Housing can be accommodated without significant impact on adjacent properties as distances between them are sufficient.
“Without a five-year housing land supply, vacant green field and derelict sites such as these should beconsidered for development so long as they are in a sustainable location.”
Public consultation on the plans will run until February 15.