DEVELOPERS have applied to scrap an affordable housing deal on a £100million building scheme.

The Inner London Group, which is behind the ambitious Marine Plaza development on Southend seafront wants to change the terms of a section 106 agreement which would have meant providing 84 affordable homes out of the 282 flats it has permission to build.

The developer maintains the deal will make the five-years scheme financially unviable and is instead proposing to take advantage of new government rules which allows builders to make financial contributions for affordable housing to local authorities instead.

If approved Southend Council could receive in excess of £9million to build social housing elsewhere in the borough.

The scheme is particularly useful for developers working on long-term projects where costs may escalate.

It allows developers to pay the contributions in stages, with periodic reviews to see whether the deal is still fair for both local authority and construction companies. If approved, the first phase will see the group hand over £300,000 to the council before a first review.

The section 106 agreement includes £160,334 education provision, highway works and £150,000 for public art. These remain unchanged.

Larry Fenttiman from the Inner London Group, said: “The Government brought in the opportunity to have an appraisal system for sites taking more than 18 months to build. Predicting what our costs could be over five years is very hard to assess.

“It is aimed at getting large schemes moving. The council could get up to £9.4 million to get housing where they want.

“There are reviews at different stages. If everything goes to plan the council will get a sum of money or money and some affordable housing depending on the outcome of the review.”

Mr Fenttiman added: “Providing 84 affordable flats would cost us in the region of £10million but with the council could get more than £9million under this scheme. Flats on the seafront are expensive but the council could use the money to build many more affordable homes elsewhere in the borough where land is cheaper. Instead of 84 they could build 120.”

Council officers have recommended the amendment to the scheme, which includes shops and restaurants, be accepted but not all councillors are convinced the deal is a good one for the town.

Chris Walker, councillor for Eastwood Park ward said: “This has to be refused as it is sheer greed. We need the money to provide affordable housing. What is it that they do not understand about the word “requirement”?”

Former Kursaal ward councillor Lawrence Davies also commented on the application before he stood down. He said: “My thoughts are starting simply removing the affordable homes elements shows a disregard of the original agreement.

“Two years ago I opposed this scheme on both parking and conservation grounds.

These objections were never honestly addressed yet application was granted.

“Here we find yet another example of how this lucrative seafront site is being exploited for greed without even the token goodwill gesture of affordable homes for the community. I am and remain opposed to the development as it is.”