Bridlington landowners and developers may have escaped a new levy that would have charged them for the construction of some buildings.
The Community Infrastructure Levy (CIL) is set to be rolled out across other parts of the county in summer next year.
But according to John Craig, the council’s forward planning and development manager, the introduction of CIL would discourage developers in Bridlington and Driffield.
He said: “There are parts of the East Riding where we can ask developers for money and there are parts where it won’t work.
“If we put a charge on a coastal area, where the developer pays £30 per square metre, our intelligence says they won’t be able to make the necessary profit. We want to encourage people to build houses in the right places.”
A draft CIL charging schedule created by the council proposes developers pay £100 per square metre in Beverley, £80 per square metre in Market Weighton and Pocklington and £30 per square metre at Brandesburton, Hutton Cranswick, Beeford and Sledemere.
The report continues: “The viability evidence suggests that development would not be able to sustain a CIL charge in Holdernesss...Bridlington urban area and Driffield urban area. Therefore no CIL charge has been included in the preliminary draft charging schedule for these areas.”
It comes after the government introduced new restrictions on the use of Section 106 planning obligations.
This is when it is considered that a development will have significant impacts on the local area.
The developer is therefore often required to contribute towards public space, affordable housing, education, highways or town centre improvements.
Legislation that came into effect last year means the council is now prevented from seeking a planning obligation where more than five different obligations go towards funding the same item of infrastructure.
The director of corporate strategy’s report continues: “In these instances the government requires the use of CIL to fund new infrastructure.”
One of the schemes to be supported by money raised through CIL across the East Riding is the Yorkshire Harbour and Marina Project in Bridlington.
It comes after Harbour Commissioners and East Riding of Yorkshire Council entered a “memorandum of understanding” in November last year.