The plans, submitted by Preferred Homes Limited, would see the existing police station building, which closed in 2015, building bulldozed to make way for the development of a 71-bed extra care home with associated open space, landscaping, car and cycle parking, service infrastructure and engineering operations.
The new care home building would comprise of three and four-storey units.
A decision on the application was due in February but this has not happened.
An Ashfied District Council spokesperson said: "A planning recommendation is being developed at this time.
"A decision has not been made.”
The plans have also met with opposition from members of the public, who have lodged objections on the council’s planning portal.
One comment read: “Shameful, money talks, site should be used for new GP practice, not a care home for the wealthy.
Another said: “A care home is not an appropriate use of this space.
"It would make an excellent new health centre.”
And a third said: “Completely not a suitable placement of a care home.
"Land area and placement far more suited to a doctors’ surgery/health centre.
"Possible site for warden-aided accommodation but limited space for outdoor amenities.”
Other concerns were also raised about the impact the project would have on nearby local businesses, particularly in relation to loss of on-street parking, and how the height of the building would affect nearby housing.
But some were also in favour of the plans with one resident saying: “Although I support this application, I think the site would be better used for the medical centre as access to Piggins Croft will be difficult due to narrow roads.
"Whichever it is used for, it should be for the benefit of local people and not be used to build any more housing.”