THE £12million redevelopment of the former Palm Court Hotel site could begin within three months after planners gave the scheme the green light.

It is the third time in eight years that Torbay Council has given the go-ahead for a developer to begin work on the now burnt-down ruin on Torquay seafront.

Councillors voted by five votes to four in favour of a mixed use development, with holiday flats, residential units including a penthouse and restaurants.

Opponents of the scheme in favour of full residential use, including former deputy mayor Cllr Chris Lewis, claimed the self catering units would soon be sold to private hands 'to the man from Shanghai' and the council would be 'powerless to stop it'.

The development management committee heard that mixed use would be worth more than £130,000 in revenue for the council, with full residential use option raising around £900,000, funding Cllr Ruth Pentney said 'the council can no longer afford to sit on its high horse' and turn down.

Applicants Havard Tisdale said work could begin in three months, with restaurants already beginning the legal process to be part of the scheme.

Richard Maddock, of Kay Elliott, said the project would be 60 per cent tourist and 40 per cent residential.

Peter Tisdale, of Havard Tisdale, said: "When we first thought about this site someone showed us a 1960s film starring Oliver Reed and he is sitting at the front of the Palm Court in the sunshine. At the time, it was the place to be.

"When we started the project our brief to Kay Elliott was quite simple — 'make this the place to be'. We also asked them for something very high quality.

"Six months down the line we are absolutely delighted with what they have come up with.

"We think this building will raise the bar for Torquay and in years to come people will see it as a design classic."

Carolyn Custerson, English Riviera Tourism Company chief executive, urged councillors to vote in favour of the mixed use option.

She said: "I support this application for mixed holiday and residential use — but only for mixed use.

"The Turning The Tide strategy clearly highlighted the shortfall of quality accommodation in the resort. This development will help fill some of that shortfall.

"I feel very, very strongly that the Palm Court site is in a core red tourism zone.

"I would not recommend this site in any way be given for 100 per cent residential use.

"We must protect and provide the right type of accommodation for our staying visitors.

"They generate close to £300million a year for this resort and we need the right accommodation to help generate that money and protect some 13,000 jobs."

But Cllr Lewis argued: "Normally Carolyn and I agree totally, but after 30 years in tourist industry and as a former fellow of the Institute of Travel and Tourism I can't agree.

"If we could put in an agreement for the next 50 years to stay in one ownership and as holiday accommodation to be let out, that would be great. But we can't.

"Holiday accommodation suggests it can't be your primary address.

"If you get someone from Shanghai who says that is his primary accommodation can we enforce it? Are we going to send someone over to Shanghai to check? Of course we can't.

"That accommodation will be sold of independently and we will have no knowledge if they are used as holiday accommodation or not."

The council will be bringing in unprecedented controls to try to keep holiday apartments for holidaymakers.

These include a register of occupants which will be inspected and people will not be allowed to stay more than 12 weeks in any 12 month period — ruling out winter lets.

Mr Tisdale told councillors they had a 'first class contractor raring to go'.

Harvard Tisdale has six months to sign a 106 agreement.

THE new six-storey development will include:

14 self-catering holiday flats on the lower floors

14 private flats on the upper floors and penthouse

3 new restaurants

Work to the carriageway to create new shared space and crossings