The Grimsby Institute Group, which owns the former Yorkshire Coast College site on Lady Edith's Drive, first revealed plans for 139 homes in February 2019 and outline planning permission was granted in July last year.
However, a restrictive covenant which meant that only educational facilities could be used on the land has prevented work from progressing.
The college, which is now called Scarborough TEC, moved out to the former University of Hull campus in 2017 and the Lady Edith's Drive site has remained almost completely vacant ever since.
A report prepared by council officers said that pre and post-16 education facilities have increased in the town with the opening of the CU Scarborough campus and Scarborough UTC, as a
result there is believed to be a surplus of educational facilities in the borough.
When the site was originally sold by Scarborough Council to North Yorkshire County Council in 1958 it was envisaged that its use would be strictly for an educational purpose. However, now the site is deemed surplus to requirements in favour of the development.
Scarborough TEC, which previously occupied the college building, applied to the authority to lift the covenant.
Plans to develop the site can now move ahead after the restrictions were removed by Scarborough Council’s Inclusive Growth Portfolio holder Cllr Liz Colling on January 19.
In the planning application, Hodson Architects said the site could house 29 detached homes, 54 semi-detached and 56 townhouses.
The existing entrance to Lady Edith’s Drive would be retained for vehicles and a public open space would be created.
The application notes: "It is a matter of fact that the scheme will bring about some obvious change in the immediate environs; this is not a demonstration of harm.
"The removal of the existing mundane college buildings and especially the tall and highly visible buildings within the centre of the site will be of significant benefit to the visual amenity of the wider area."
Auctions sell off college contents
The entire contents of Scarborough's Yorkshire Coast College have been sold off following several auctions, as the building's owners look to empty the interior ahead of progressing development plans.
Catalogues of engineering equipment, kitchen freezers, lockers, water fountains and pianos were listed for sale on Bidspotter in November last year and a separate auction on January 11.
NCM Auctions in Doncaster sold the entire building's contents.
Notable former students include celebrity chef James Martin and singer Robert Palmer.