Malcolm Allan Housebuilders first revealed plans to create two hostel style accommodation blocks, mainly for offshore workers, late last year.

In February, councillors approved only one of the applications, prompting the developer to resubmit their proposals for the second one – slashing the size from 37 to 20 bedrooms.

But the application was again rejected by Aberdeenshire Council’s Garioch area committee in June, and an even smaller hostel block with 11 rooms was approved by members yesterday.

Four councillors voted in favour of the officer’s recommendations and four to refuse on the grounds that it would have a negative impact on residents. The casting vote was with committee chairman who voted in favour of the plans. There were a few conditions added relating to the siting of the fire escape and waste removal.

The area proposed for conversion is currently ground-floor office space.

The money raised from the rooms would be used to fund the new Garioch Heritage Centre within the site, which is not yet open.

The B-listed Loco Works site was first established in 1903, and the site has undergone a period of redevelopment throughout the past few years.

The site was earmarked for 150 houses, employment, community facilities and retail under the Aberdeenshire Council local development plan (LDP).