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The application said the former sorting office overseer’s room and the safe room would be kept on the ground floor to be used for flexible shop and exhibition spaces.
The council said it intended to improve the condition of the building, enhance commercial and community use, bring in more energy efficient measures, including solar panels, and provide much needed homes.
North Devon Council said it was conducting a pilot project to see if intervening in the Ilfracombe housing market would help improve the standard of existing low-quality homes.
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