Council planners have given permission for work to start on the first phase of the £75 million Adelphi Wharf development in Salford.
But the developers successfully challenged proposed Section 106 (S106) payments of £676,682 at planning.
The move will see 206 apartments built across an eight-storey towerblock on the banks of the River Irwell near Salford University’s Adelphi campus.
Buy-to-let developers Knight Knox International have plans for two more seven-storey towerblocks in two further phases, totalling 580 apartments.
The scheme will be let and managed by Fortis Lettings and Management, while Fortis Developments will construct the multi-million pound scheme.
The blocks, to be built on a vacant and disused 0.7-hectare stretch of land, will face the river looking towards Peel Park.
75% of the flats have already being sold off-plan before they are built.
Fortis said it should avoid the developer’s contributions because low profits in the current economic climate would mean “any contribution would make the development unviable”.
Government policy requires that when assessing viability, councils must allow for a ‘competitive return’ to developers. This means a minimum developer profit of 17.5% of value should be allowed.
Salford Council said no S106 payments were required, because most of the money planners asked for would have been used to improve the public walkway by the River Irwell, which the developers are already doing as part of the scheme.
Councillor Derek Antrobus, assistant mayor for strategic planning said: “Permission was granted. No S106 monies were required.
“Most S106 money would have been used to improve the Irwell walkway and the developers are doing that as part of the scheme.”
“Salford City Council’s aim is to provide a continuous walkway along the River Irwell.
“This scheme is a significant contribution to that as well as bringing a derelict site back into use to provide much needed housing.”
The last use for the site was the Sir James Farmer Norton engineering works, which was founded in 1852 and by 1961 employed 680 people in the textile finishing trade.
Commercial buildings have long been demolished and its last usage in 2011 was for a car park, which is now overgrown and hit by constant flytipping.
Knight Knox oversaw plans for a widened 4m x 3m pedestrian pathway to run along the Irwell riverside, as well as installing planted roof gardens on the top floor of the blocks.
The developer already has a hand in the £20m ‘Tomorrow’ towerblock at MediaCityUK and numerous other high-profile schemes in Salford and Manchester.
Read: Salford Skills Centre sold to Knight Knox for £650,000
Read: Work starts on £200m X1 MediaCityUK
The towerblock will be made up of 35 studios, 62 one-bed, 89 two-bed and 13 three-bed flats, along with 7 three-bed townhouses.
The plans include underground car parking for 86 vehicles, a ground floor gym for residents and eventually, an internal courtyard bounded by the two further seven-storey blocks.
The conclusion of council planners was that “this development would bring forward a brownfield site in accordance with the regeneration aspirations for the wider area.”
An internal report added that the scheme’s public realm areas and riverside walkway would have a positive impact on the visual amenity of the area.
Martin Copeland, managing director at Knight Knox, said: “2015 is proving to be a very exciting year for Salford, due to significant investment into the city’s regeneration.
“After several months of preparation, we’re thrilled to be providing the area with high quality residential property and valuable investment opportunities, whilst boosting our portfolio with such a distinctive scheme.”
Director of Fortis, Kieran Moore, said: “Fortis Developments has worked closely with Salford City Council and Urban Vision to ensure that the design and visual impact of Adelphi Wharf complements the area, whilst incorporating modern architecture along the city’s waterfront.
“Adelphi Wharf is an exciting project, which we expect the whole area to benefit from, enhancing the city’s growing reputation and breathing new life into this currently vacant site.”
Phase one is expected to be completed by the end of the first quarter of 2017.
