PLANS to transform the former US Air Force base at Upper Heyford into a new village with 1,000 houses, a primary school, museum and shops have been unveiled.
But the latest proposals for the site near Bicester mean almost all the existing 300 American-built bungalows will be knocked down.
The poor condition of the housing area's roads, sewers and gas mains has prompted the developers to drop their original plan to retain the homes because councils and utility companies were not prepared to adopt the infrastructure.
The North Oxfordshire Consortium, made up of Wimpey Homes, Taywood Homes and Westbury Homes, owns the 1,250-acre site and hopes to submit a formal planning application in August.
The group staged an exhibition at Heyford Park Chapel on Saturday to give residents a chance to find out more about its proposals.
NOC chairman Kevin Shelley said: "We have got to rip out and replace, and we can't do that in the midst of an existing housing estate."
Patricia Kirby, chairman of Heyford Park Residents' Association, said the announcement that the existing houses would be demolished had shocked and angered a lot of people. "We all love living here," she said.
Mr Shelley said that of the 1,000 new houses, 300 would be affordable housing, meaning there would be enough in theory to accommodate all the current residents.
But he said the amount of new housing for rent would be decided by Cherwell District Council.
Mr Shelley said the consortium was working on a local lettings policy for the site, which would give existing residents priority, provided they met means-based criteria.
If Cherwell failed to back the idea, current tenants would have to compete with the 3,500 other people on the district's housing waiting list, he added.
Mr Shelley said: "If the local lettings policy gets approved and they qualify to achieve that, we will guarantee that we won't make anybody homeless."
The consortium's proposals also fail to comply with strict conditions included in Cherwell's latest planning guidelines for the site.
These include the number of car journeys allowed to businesses now based in the former aircraft shelters and the amount of space used by car storage and distribution firm QEK.
Mr Shelley said: "Our application will be in conflict with Cherwell District Council and it will be tested through the planning process. If they refuse it, we will have the choice whether to take it to appeal."
Some 1,300 jobs are also included, about 300 more than at present.
The consortium's chief executive Keith Watson added a heritage centre would be created for people to learn about the site's history as an American airbase during the Cold War.
If the plans are approved, work could begin late next year.
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