PROTESTERS who took their council to court for granting an illegal planning permission have welcomed the authority's decision to drop the application.

Richmondshire District Council's attempts to build 14 flats on the site of Yorke Square car park, in Richmond, were proven to be illegal after community group Save Our Shire took the authority to court. The council was forced to pay the protesters more that £17,000 in legal costs after a High Court judge quashed the planning permission, but a legal loophole meant that the council still had a "live" application for the site.

The authority had planned to sell the land for housing, in order to fund a controversial move to new £5m headquarters at Colburn, but at a meeting on Tuesday councillors voted to drop the application and develop the site as a "community resource".

Members will also look into new options for alternative office space, the current state of which has been described by council auditors as "unsatisfactory".

Coun Stuart Parsons called for an independent inquiry into the events which led up to the application in 2006, and the authority's subsequent handling of the protesters' claims. He said the council's estimate that £67,000 had been wasted on the affair was a conservative one, and that the figure was likely to be nearer £200,000.

"It is astonishing that things went as far as they did," he said. "SOS has worked so hard and they should be commended, but we must now try to restore trust in this council.

"An independent inquiry is the only way to do that - lessons must be learned from this."

SOS was formed three years ago to fight the authority's planned sale of the land. They gathered 8,500 signatures in support of their campaign, and raised the £17,186 needed to take their battle to court.

The protesters sought a judicial review, which cleared its first hurdle and was due to be heard in the High Court, but the council voted to drop its defence after being told by lawyers that it could lose.

Peter Caldwell, SOS member, said the group was relieved the day they had been working towards had finally arrived.

"It has been a long, hard struggle," he said. "For 21/2 years we collected money from residents to take the council to court, and we are very pleased with this decision."

Another member, Dr Sheila Harrisson, added: "I am intrigued as to what 'community resource' might mean, but we are hoping the area will be enhanced with picnic tables, low-level lighting, marked parking bays and an information board which will help people to enjoy their visit to what is a very historic and picturesque area.

"We will be keeping the money that was refunded to one side, until we know we won't have to take legal action again.

"After all, it doesn't belong to us - it belongs to the people of Richmondshire, and we want to make sure it is spent on developing Yorke Square as a place for the community to enjoy. That is what we fought for."

Officers are due to present an interim report on possibilities for the Yorke Square site in September, and options for carrying out an independent investigation into the affair will be presented at the council's next resources meeting.