A DISUSED family centre could house asylum-seekers if a proposal by security firm G4S is approved.
The firm is looking into transforming three buildings in Derby into asylum-seeker hostels.
The company is in discussion with Derby City Council about whether it would be worthwhile buying the vacant family centre in Stepping Lane, an empty house in Pear Tree Street, Normanton and a house in Francis Street, Chaddesden.
It is yet to submit any planning applications and the council says the second two homes are "inappropriate" to house asylum seekers because they are domestic properties.
Councillor Paul Pegg said: "No planning application for a hostel on Stepping Lane has been received.
"Taking into account the needs of all our communities and those seeking asylum, no approval for the dispersal of asylum-seekers to this location has been given."
It is understood the former family centre, which has been closed for a number of years, could contain as many as 30 bedrooms, if G4S goes ahead with its plans.
However the company would not comment on the proposal.
The centre was targeted by thieves who stripped lead from the roof in May 2011 and currently has a "sold" sign outside it.
A council officer explained that the dispersal of asylum seekers is the responsibility of the Home Office. The standard procedure is for Home Office-contracted providers to contact local authorities to provide approval for the use of premises.
G4S consults with the council on the dispersal of asylum seekers to the city, under the terms of its Home Office contract.
The officer said in respect of the three locations quoted, Francis Street and Pear Tree Street are domestic properties and hostels would not be appropriate.
Barry Seward, 47, who lives in Stepping Lane, said: "Bringing more people into the area will bring the associated problems with it.
"I don't care one iota which country these people could come from and have every sympathy with whatever reason they may choose to flee from their own country.
"But housing them all together in one, let's be frank here, quite cramped building, isn't the best thing for them either.
"I don't agree with it."
Van driver Melissa Angrave, 27, of nearby Campion Street, said she too was against the idea.
She said: "I think we should sort out housing for the Brits before we start looking at places to home people coming here for asylum.
"My partner and I have had problems in the past with private landlords and we have been on the waiting list with the council for three years.
"Now it seems people can just come here from overseas and get given a place straight away."
The Telegraph understands that the council is asking local stakeholders for their thoughts or objections on turning the three properties into asylum hostels.
If G4S submit planning applications it is believed that the Stepping Lane site would have 30 bedrooms, the Francis Street house would have four bedrooms and the Pear Tree Street property would have three bedrooms.
It is not yet clear how many asylum seekers would be sleeping in each room.
Alex Dennis, 18, is in his first year at the University of Derby studying engineering and lives in a shared house in Handford Street, which overlooks the currently empty family centre.
He said: "I have no problem in principle with the building becoming an asylum-seekers hostel but I don't think people coming to the UK should be given benefits straight away."
And another Handford Street resident, who did not wish to be named, said: "I'm totally against this.
"You will a transient population coming and going, not knowing if they are going to be here for one night, one week or a month."
A Stepping Lane resident, who also did not wish to be identified, said: "We have enough problems with crime around here as it is, so another 30 or more people adding to that would be a problem.
"We have a bail house close by and the police are seemingly here most nights dealing with one person or other."
![Plans for three asylum-seeker hostels in Derby get cool response from city council and residents Plans for three asylum-seeker hostels in Derby get cool response from city council and residents]()