Lightwater Valley theme park wants to develop its site.
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The future of a North Yorkshire theme park appealing against a decision to stop expansion plans is "uncertain" without development, an inquiry heard.
Lightwater Valley was told by Harrogate Borough Council last July it could not build holiday lodges and caravan sites.
Barrister for the park, Stephen Whale, said: "The proposed development is a way to secure the future of the park."
The council had said the proposal would significantly change the character of the area, which is open countryside.
The plans include building 136 lodges, a site for 204 caravans and a reception complex.
Plans 'critical'
Mr Whale said: "The planning permission is critical to the future success of Lightwater Valley and the considerable benefit it provides for the wider area."
The council has concerns about the sustainability of the extension and public transport connections.
Paul Brown, barrister for the council, said: "New building development in open countryside away from existing settlements should be strictly controlled."
"A limited bus service to Ripon and no direct service to other nearby attractions on a proposal of this scale shows this is a site patently not well connected."
The inquiry is due to last three days and a decision expected from the planning inspector in the next couple of weeks.
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