Developers Gladman has revealed its plans for a new housing estate on Langton Hill would inject millions of pounds into the area’s economy and create hundreds of jobs.
The company - which is behind some of the region’s biggest housing projects - has also denied claims their development will have a negative impact on Horncastle.
They claim the estate - featuring up to 300 homes - would provide short and long-term benefits for the local economy.
It states skilled workers would be attracted to Horncastle, boosting businesses in the town.
Documents submitted to East Lindsey District Council show 20 per cent of the development would be set aside for affordable housing.
The remaining houses would consist of:
n51 two bedroom
n54 three bedroom
n102 four bedroom
n33 five bedroom.
Gladman estimates the development could have an overall population of 800 people.
The company adds the majority of homes would be for families and would help address figures which suggest Horncastle has an ageing population.
It estimates constructing the site could cost £36m and would support an average of 143 jobs per annum over a five year period.
Gladman says the influx of families would generate demand for public services in the Horncastle area, including hospitals, GPs and community services.
The reports says the houses would be sustainable, distinctive and high quality and would ‘enhance the character of the town.’
It has produced an environmental impact report and says the site has limited botanical interest. It stresses existing hedgerows would be maintained.
The company dismisses concerns about the development being on a hilltop and says new trees - combined with what it calls a ‘sensitive design’ - would mitigate any visual impact.
The report reveals a lake would be constructed at the bottom of the site to hold surface water.
However, it states that the design of the development - featuring swales - would mean existing drainage and sewerage would cope. It points out there is no history of flooding at the site.
The company also defends the access system via Langton Hill and Osborne Way.
It has produced a range of figures to suggest surrounding roads are not an accident hot-spot and extra vehicles would have little impact on traffic flows.
It says any companies looking to develop the site would improve bus stops on Lincoln Road, including a new shelter.
The report stresses the town centre is within walking distance of the development.
There is provision to include a children’s play area and there would be various open, grassed areas.
The report does focus on the likely demand for places at local schools.
It suggests it could lead to 60 extra primary school pupils and 57 at secondary school.
It accepts that Banovallum School is operating at capacity but points out some current pupils live out of the catchment area.
The report acknowledges any developers would make a contribution to primary and secondary education in the area but does not mention any figures.