Developers already have outline planning permission for houses on the site off Brownlow Road and are now applying for detailed permission for 58 properties.
But both residents and town councillors fear that the access off Brownlow Road will cause traffic safety and congestion problems.
At a meeting of Ellesmere Town Council on Monday councillors said that there were already problems with traffic from the Fullwood factory site emerging from its car park via the station entrance.
"We have health and safety concerns for existing residents, school children and other road users. The entrance and exit to this site is currently used to gain access to the Fullwoods site, which sees 10 artic lorries a day, plus traffic from 50 employees’ cars as well as numerous customers vans and delivery vans," a letter to Shropshire Council from the meeting says.
"Brownlow Road is already a recognised traffic hotspot and a heavily congested road. The additional 100 cars that this site could accommodate would have a huge detrimental impact on this road as well as the Pinch point on Trimpley and would cause further congestion into the town centre."
They also questioned what would happen if engineering work was needed on the bridge carrying the Ellesmere to St Martins Road which abuts the land.
"The plan does not show sufficient provision for access to maintain the railway bridge situated on the border of the site."
There were also concerns that there is no open space or play equipment including in the detailed application.
Residents that have already objected to Shropshire Council include Mr Alun Hughes.
In a letter to the council he wrote: "Browlow Road is very narrow with parked cars and school parking during school time. The extra possible 150 plus cars and associated vehicles will make it a nightmare for the existing residents that chose to live on a quiet street.
"The safety of pedestrians is a great concern, many children on their commute to school plus us elderly folk."
The town council says that to address health and safety concerns, it would like to see a draft site and traffic management plan. This would also serve to ensure that Fullwoods continued to have full access to its site throughout the development.
It is also calling for an agreement that money be sought from the developer to improved the road infrastructure.