The Co-operative Group has submitted a Listed Building Application to convert the Crown Hotel on High Street in Boston Spa, Wetherby.
The company is also seeking permission to change the use of the site and make both internal and external alterations.
Planning documents detail how the ground floor of the building, part of which is Grade II listed, was used as a pub until 2012.
Comments can be sent to planning officers until January 26, but a number of letters of support and objection have already been lodged.
Luke Broadbent, of The Close, said: “I fully support this application, having recently moved to Boston Spa I was surprised to see the pub in the state it is on the high street. It’s an eyesore.”
But Rachel Adam-Smith, of Church Mews, said that “residents find it difficult to park at the best of times close to their homes. The road cannot cope with any more traffic”.