BY CRONAN SCANLON

RESIDENTS of a tiny village on the border with Derry say they will fight proposals to build a new commuter town there.

The Donegal News has learned that plans are to be lodged with Donegal County Council shortly for a massive 500 residential units as well as a hotel and school grounds in the centre of Killea.

Belfast based, McAllister Holdings confirmed they are preparing a masterplan to develop a new "village centre" on a 47 acre site which is part of Toland's potato factory. The proposed mixed use scheme will also comprise retail space, offices and health centre; restaurant and bar; a crèche facility; public open spaces and a village green.

Killea is a small village some seven kilometres south west of Derry City on the Letterkenny Road. It has no school, and parents take their children to the next nearest school which is located five miles away in Newtowncunningham.

Local residents say they are outraged at the plans and vowed to do everything in their power to stop it. One resident called for an investigation in to the Council's handling of the issue claiming it is in "complete contravention" of the Killea Local Area Plan which was adopted in 2004.

Sinn Fein Councillor, Pádraig MacLochlainn, also questioned the Council's interpretation of the Area Plan and said he would be keeping "a very close eye" on developments there.

The Council stands to collect more than ¤15 million in development charges if the proposed plans are passed.

The Council did not reply to a number of queries on the proposed development which were submitted by this paper.

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