You can view the details of the proposal on the council's online planning register here (use the code PA13/04056 if needed.)
Although I cannot give a definitive view until I have seen and studied all the application documents, I am hugely concerned about this proposal. The local community looked at the potential for development in all areas surrounding the town as part of the Town Framework plan. Various areas were ruled out for good planning reasons. One of the areas considered was the land off Upper Chapel. This was ruled out because of concerns over highways and access issues as well as being outside the town's development boundary. We did not think that Moorland Road and St Johns Road, or Meadowside and Western Terrace could cope with the additional traffic that would be generated by a new scheme.
Instead, the framework plan recommended the area south of the Link road and around Stourscombe for further development.
Nobody can stop a developer making a planning application for any area - regardless of what is proposed or who owns the site. But I would hope that, when the town and surrounding parishes have been through the process of agreeing a form framework plan, Cornwall Council's planners will take the wishes and needs of the community into account when making their decision.