The developer of the Milton Mill site in Monifieth has been ordered to help pay for upgrading the town’s secondary school.
The condition had been imposed on H&H Properties as part of its planning permission, with Angus Council demanding £2250 for each of the 77 flats being built.
Also, seven of the flats had to be affordable housing.
With the cost of the development rising to almost £16 million, the company asked the council to waive these conditions but was met with refusal.
H&H then took its case to the Scottish Government’s planning appeals unit.
Its planning consultant Derek Scott argued that the company’s profit margin could be reduced to just 0.63% meaning the scheme would no longer be commercially viable.
Mr Scott claimed the works needed to increase the capacity of Monifieth High had been needed irrespective of his client’s development and should not be partly paid for by funds arising from it.
He said: ”As our client’s development scheme comprises of 77 flatted residential units it is unlikely to generate a significant number, if any, children of high school age.
”Indeed the nine flats already sold or under missive contain no dependent children and are all occupied or to be occupied by persons in the 65-plus age group.”
Planning appeals reporter Douglas Hope carried out a site visit and studied the rival claims of the council and the company before deciding to uphold the conditions.
In his newly-released judgment he said: ”Whilst the first few houses have not generated any school pupils, the nature of the accommodation being provided has the potential to accommodate families with children and I consider that the council’s education contribution requirement is appropriate.”
He appreciated the recession had made the planning conditions ”more onerous in financial terms” than the company might have predicted, but there was insufficient evidence to show they were unreasonable.
H&H was originally expected to pay around £170,000 towards the cost of the high school’s improvements.
However, it is understood an agreement in principle has been reached with the council to reduce this to £90,000.