A DEVELOPER has been halted from demolishing the historic Beehive Mills to build 121 homes after it tried to dispense with planning obligations.

It claimed the development will not be viable with contributions of more than half a million pounds toward education and health provision as previously set out in a Section 106 agreement.

In addition, it is no longer required to provide affordable housing because it benefits from a government incentive to encourage developers to build on vacant brownfield sites.

READ MORE: Developer says affordable housing at Beehive Mills not viable

Cllr Bob Allen said the council was being "taken for a ride" and were "conned" when the landowner agreed to the planning obligations.

He said: "We should stand by our guns. If the scheme is not viable with the [Section] 106 money that's been agreed, well, tough. We'll keep our mills for the time being until something else comes along that is viable."

Landowner Arndale Properties was granted outline permission for plans earlier this year but Countryside Properties agreed to acquire the land if these new proposals were agreed.

Planning officers recommended councillors approve the application which featured a "clawback clause" meaning contributions could be required at a later stage.

Countryside Properties' agent Lisa Matthewson explained: "We're not saying that we can't provide any contributions. It would be decided at that time whether contributions can be afforded."

READ MORE: Beehive Mills demolition plan set to go ahead

Cllr Nick Peel said: "I can't see how we can just abandon over half a million of education and health funding which our schools and health services are increasingly relying upon."

The planning committee voted unanimously to refuse the application.