The closure of the former Lounge Cinema, on North Lane, in 2005, sparked a community row.

Proposals for its redevelopment have been controversial in the community with a local action group previously branding the scheme a "mish mash".

But after securing initial planning approval for the £6 million scheme in January, Associated Tower Cinemas has now re-submitted simplified plans for the site.

The firm says the revised version includes reducing the size of the proposed building at the back and altering the design of the foyer and frontage to retain the style of the former cinema and adjoining buildings.

Plans involve demolishing most of the former cinema's auditorium to build shops, offices, a restaurant and a terrace of small business units. There would also be an external smoking terrace.

The number of underground parking spaces has been reduced to 20 while the parking already in existence at the rear will remain.

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 restauranters, local businesses and retailers, who are all keen to discuss the potential opportunities."

If plans are approved, the work is expected to be completed in December 2009.

The revised planning application will be available for public viewing in Headingley Library on North Lane.