Plans to demolish a former church to build a £5 million care home could be scuppered after otters were discovered living near the site near Crossflatts.

A survey undertaken on behalf of applicant P & B Kennedy Holdings Ltd reported evidence of the protected species on the northern bank of the Leeds-Liverpool Canal, near to the development plot in Bradford Road, Sandbeds.

The report warns that demolishing the former Church of Christ the King, which closed in 2006, and building the nursing home could lead to the “harming or killing” of otters.

John Kennedy, managing director of P & B Kennedy, said: “We are in the care industry. We care for humans but we also want to make sure any development we do affects the wildlife as little as possible. There will be some impact with any development but we will want to mitigate that as much as we can.

“We are currently awaiting the outcome of the planning application. If it is approved, I am sure there will recommendations in the planning report which we will follow.”

Mr Kennedy said the proposed three-storey, 58-bed care home would cost up to £5 million to build and between 70 and 100 full and part-time jobs could be created as a result.

Further evidence of otters has also been discovered in Morton Beck, which flows nearby, suggesting otters have recolonised the area.

Bats have also been found roosting in the former church.