Decade-long plans for hundreds of homes in Caerphilly County Borough could be shelved for not complying with current council planning policy.
Up to 545 homes were promised on the site of the former Cray Valley Products paint factory at Waterloo, near Machen, in 2006.
The site was seen at the time as “crucial” to help towards the council achieving its housing requirements within its local development plan (LDP).
Caerphilly Council granted planning permission in 2007 with the expectation that it would receive £2.9 million towards its highways budget and £2.6m for a school onsite.
The last draft of the section 106 agreement was prepared in 2009 but has yet to be signed.
A further 1.5 acres for 16 affordable houses was also agreed, with work promptly starting to excavate 36,000 cubic metres of contaminated soils.
Despite spending £19m on clearing the site, landowners Total Limited have yet to agree an “appropriate” remediation scheme with the council which has delayed any houses being built.
Since then the authority has adopted an LDP up to 2021 informed by new planning guidance from Welsh Government.
A council report says the scheme still has merit through proposing to redevelop a large brownfield site, but certain aspects must be brought up to date before it can progress.
“The planning application and the resolution to grant planning permission do not adequately reflect the current planning policy context,” says the report.
“There is a strong likelihood that the environmental statement that supports the application needs to be brought up to date before the council can consider the acceptability of the proposed development.
“The proposed development does not make adequate provision for affordable housing, public open space, nature conservation enhancement, and for travel by means other than by car.”
The planning committee have been asked to refuse the application when they meet on February 20.