The Sandpiper pub in Cullercoats will not face demolition or redevelopment after councillors sided with neighbours' objections.
Malhotra Leisure LTD applied for permission to knock down the pub and replace it with an apartment complex and several commercial units in January. However, disgruntled residents have claimed the 13.5 metre-high redevelopment on Farringdon Road would have overshadowed many homes, potentially increasing energy costs.
Residents also feared the development would invade their privacy and create traffic and parking chaos. Locals were unsatisfied with the 14 parking spaces allocated for the flats and feared a new Asda on the site would generate further traffic.
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Council officers had determined there would be no significant impact on the amenity of the surrounding homes.
A total of 295 residents took to the council's planning portal to object to the proposals. Coun Linda Arkley OBE, alongside Conservative candidate for Cullercoats Steven Robinson, organised a petition against the redevelopment which gained 788 signatures.
Malhotra did reduce the number of flats originally proposed from 18 to 14 and altered the design of the roof but many felt this did little to address the possible impact the development would have.
Coun Willie Samuel said: "These changes do not address the fundamental problems my residents have raised with me and as a result, I remain opposed to the development.
"The area is not allocated for housing in the local plan and the report notes the contribution of 14 homes contributing to the borough's housing needs. But I contest this is would be insignificant and is outweighed by the negative impacts."
Harvey Emms, representing Malhotra LTD, said: "We have demonstrated that the Sandpiper pub cannot continue to operate as a public house.
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"We have worked very closely with council officers and we have taken on feedback from the public consultations, specifically providing more advice on daylight and sunlight which residents have been looking into. We used software which is required to deliver robust daylight and sunlight analysis, so it is in accordance with the Building Research Establishment.
"We have looked at the car park configuration and improved that. We have looked at the design of the roof and have broken it up and officers have recommended that the design is acceptable."
North Tyneside Council's planning committee voted against the application in a split five-two decision.
Mr Robinson said: "It is fantastic news that the application has been rejected. Luckily the planning committee has listened to the residents and understood the negative impact on residents in terms of privacy, shadows, and increased traffic.
"I want to thank everyone for getting behind the campaign and for all the support and I want to thank the committee for doing the right thing."
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