A new restaurant on the site of a disused former garage site in Fishguard’s Lower Town will avoid paying a £15,000 affordable housing contribution if its three associated apartments stay as holiday lets.

The application in the town’s conservation area, submitted by Orwell Pine Co Ltd, for the restaurant/café and three apartments was recommended for conditional approval, subject to the completion of a Section 106 legal agreement, and conditions including the implementation of flood mitigation measures.

A report for members of Pembrokeshire County Council’s March 14 planning committee said: “The application submission proposes residential apartments for the open market.

“The applicant has advised that this is in order to obtain development funding on the wider lending market. However, the intention is for the three apartments to be used as holiday let accommodation.

“Accordingly, the applicant is of the view that a financial contribution towards affordable housing should not be required of the development and requests that it be recognised that the proposal, inclusive of the [business] use, represents a large investment to support local employment, bringing a continued inward investment to the visitor economy, whilst enhancing the conservation area.”

In the absence of an assessment providing evidence that it would be unviable for the development to proceed, policy normally requires a 10 per cent contribution to affordable housing.

This would amount to £15,262.50 for the three properties.

Fishguard & Goodwick Town Council support the application, subject to the prevention of new developments being used at any time as holiday lets.

The report for planners states: “Given the intention is for the units to be occupied as holiday lets it is considered reasonable that a recommendation of approval be subject to a Section 106 agreement, only triggering the required affordable housing contribution should the units be occupied as residential (Use Class C3), there being a permitted development right for properties to move between the C3, C5 and C6 use classes.”

At the March planning meeting, agent Rob Howell said the application offered “an exciting opportunity to bring more to Fishguard and Lower Town,” adding it would bring “year-round employment for local people as well as additional seasonal employment.”

Committee Vice-Chair Cllr Jordan Ryan, who moved the recommendation, said it was a “currently unused site that doesn’t look very nice”.

The application was supported by committee members.

Speaking after the meeting, a spokesman for Pembrokeshire County Council said: “A contribution towards local needs affordable housing will only be required of the development if it is occupied as a sole or main residence.

“If once constructed the apartments are occupied as holiday lets then a contribution is not required.”

“It is permitted to change the use of a residential unit between a sole or main residence (Use Class C3) and a holiday let (Use Class C6) without the need to submit a planning application.

“Following construction of the development, should the apartments first be occupied as holiday lets and then later be used as a sole or main residence this change in use would trigger the requirement to contribute towards affordable housing.”