Plans for a residential care centre and an assisted living facility in mid-Kerry have been submitted to Kerry County Council.
The agent for the proposed development in Milltown says the HSE is aware of the plans - he says it's hoped that the residential care building could be used as a step-down facility.
However, local councillor Michael O'Shea opposes the proposed development adjacent to Nagle Rice primary school.
He says the lands need to be saved for the children of Milltown.
The council's due to a make a decision on August 5th.
Ross Building and Maintenance Solutions Ltd have applied for planning permission to build a 46-bed residential care centre and 12 two-bedroom units at Ballyoughtragh North, Milltown.
Cllr Michael O'Shea claims the development would represent a severe threat to the expansion of Milltown's educational and community facilities.
The Fianna Fáil councillor says if these lands are lost to commercial development, it'll have catastrophic consequences for education and the future development of Milltown.
He says Nagle Rice has already had to expand and with Milltown's growing population, further expansion of the school may be needed.
Declan Noonan of Declan Noonan and Associates, which is the agent acting on behalf of Ross Building and Maintenance Solutions, says the development would not inhibit the school's ability to extend.
He says it's envisaged the 46-bed residential care centre would be used as a step-down facility for those who've left hospital but are not yet in a position to return home.
Declan Noonan says the assisted living facility of 12 two-bedroom single storey units would be beneficial for those in need of temporary residential care and their families.
He cites the example of how a person who relies on the support of a full-time carer could stay in a unit when their carer is on holidays.
Mr Noonan says the HSE is aware of his client's plans.
The planning application includes proposals for 113 car parking spaces; Declan Noonan says 20 of these would be provided to the school and to the community .