Plans have been unveiled to demolish the former Larkfield bus depot in Glasgow’s south side and build more than 100 homes and at least six shops.

The proposal will see five “retail units”, a “food store”, a “drive thru”, a garden centre and 320 parking spaces built at the Victoria Road end of the site.

It is estimated by the developer Owen Wilson, of firm Park Lane, that between 150 and 200 full time equivalent jobs will be created when businesses open in 2018.

Previous proposals for a superstore and cinema on the site at the junction of Victoria Road and Butterbiggins Road were shelved amid the economic downturn.

Mr Wilson told a community council meeting in Govanhill Housing Association’s headquarters in nearby Coplaw Street that homes at the Cathcart Road end of the site will be a “housing association development”.

However there was controversy when it was revealed that the “preferred partner” is Edinburgh-based Link Housing Association.

“As far as we are advised this is the partner that is supported by Glasgow City Council,” Mr Wilson told the community council, “that’s who we have been directed to engage with”.

Former city councillor Anne Marie Millar, who runs the Larkfield Centre in Govanhill, said: “I just find it incredible that the city council would bypass our local housing association.”

Mr Wilson was asked whether he had met with representatives of Govanhill Housing Association, which has offices across the road from the site, before selecting Link as the preferred partner.

He said: “I’ve not had any discussions with Govanhill Housing Association. The process we go through is we engage with the city council regeneration team, or housing team as it were, and we also speak to a range of housing associations that we have had dealings with and that’s what happened in this situation.

“Very early in the process we got positive indications that Link Housing Association wanted to do this development and had the potential to be grant approved in terms of doing that.”

When pressed on what he meant by grant approved, Mr Wilson added: “The information we have is that this site would secure the appropriate grant assistance or approval for a social housing landlord.”

A spokeswoman for Link Housing Association said: “Link was approached to partner Glasgow City Council and Park Lane on this development as it will contain properties for mid-market rent (MMR).”

Benchmark council funding is £46,000 per MMR unit, according to the spokeswoman, taking the potential outlay by the local authority to almost £5million.

She added: “Link has had discussions with Govanhill Housing Association, being the local RSL (registered social landlord), to make them aware of Link's involvement and Govanhill confirmed through these early discussions that Govanhill wasn't interested in taking forward proposals for MMR.”

Director of Govanhill Housing Association Anne Lear said: “The association was aware of the proposals by Link Housing Association to develop new housing on the former Larkfield bus depot site in partnership with Park Lane Developments. We understand, however, that the proposal is for mid-market rent and not social rent which is more preferable to this association in developing new housing for the needs of the Govanhill community.”

A spokesman for Glasgow City Council said: “The redevelopment of the former Larkfield depot is one of a number of initiatives that the council is funding and promoting within Govanhill, working with a number of housing associations.”

The plans will be put on display at Govanhill Neighbourhood Centre in Daisy Street from 11am until 7pm today.