Ardur and Worthing Council has agreed that the Frosts Cars site in Brighton Road can be developed to create 176 apartments, including dozens of affordable homes, and business space.
Councillors had rejected a previous application to develop the site, but supported this scheme after the owners agreed to reduce the height of the apartment blocks and to make a number of design improvements.
In addition, the council is working with Vivid, a registered provider of affordable homes to ensure that there would be a greater number of affordable homes than were originally proposed.
The scheme will include public green spaces, a tree-lined central avenue, large roof gardens for residents, riverside cycling and pedestrian pathways, boules court and a play park for children.
The development will also boast energy efficient materials to retain heat, as well as being fitted with LED low energy lighting, with well lit public spaces and individual heat pumps to generate heating and hot water.
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The Frosts project, in Shoreham's Western Harbour Arm, is designed to give the district an economic boost, deliver new job opportunities and provide much-needed housing.
At a meeting, Vivid indicated they were keen to take on the site and would be looking to utilise Homes England funding to provide up to 100% affordable housing with a mixture of low rent and shared ownership apartments.
Sustainable travel has also featured heavily and the developer has agreed to provide land for the A259 planned cyclepath and contributions towards other sustainable transport initiatives. The scheme would also provide 41% EV charging points and up to eight car club spaces.
The council's planning committee was keen to ensure that West Sussex County Council (WSCC) delivers improvements to transport infrastructure, as well as ensuring that enough is done to provide enough school places and health partners carry forward plans to enhance health provision.
Cllr Steve Neocleous, Adur's Cabinet Member for Regeneration and Strategic Planning, said: "The plans for the development at the Frosts site have been amended and I am pleased that there has been a reduction in height and a reduction in the density of development for this site.
"We want to support economic growth across the district and the regeneration of Shoreham Harbour is part of that plan as we continue our efforts to modernise the area and make it an attractive place to invest in.
"But our commitment is very much focusing on the environment and that is why we want to use brownfield sites as opposed to having to look at greenfield land to help solve the shortage of housing."
In a bid to regenerate Adur, the council is working closely with businesses, developers and residents to deliver projects that will boost economic growth and provide housing. As part of the wider Shoreham Harbour Regeneration project a number of new jobs have been created with the Port Authority delivering new industrial units for start up businesses in various locations across the eastern harbour arm.
