Thompson Homes was granted permission to build houses on the Manor Road Nurseries land, which was once used to grow bedding plants for the borough by the council’s Parks and Countryside Service.
The site was sold after Scarborough Council moved the service to its Dean Road depot.
The developer has now been granted permission to instead build 14 small business start-up units.
Part of the land will be left empty for a potential future development to be brought forward.
Scarborough Council planning officers have now granted the change to allow the business units to be built using delegated powers.
In the planning report prepared for the authority it states that the “proposed buildings are small in scale, reflecting the need for modest sized units within the town for emerging small businesses.
“Within the [planning documents] the agent states that the applicant believes that the damaging effect of the pandemic will see a greater need for small units for new small businesses and also for existing businesses that need to down-size.”
Two residents objected to the business units, stating that the business use would lead to an increase in noise and disruption.
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