Controversial plans to build 130 houses on parts of Rosetta Holiday Park in Peebles hang in the balance, with the developer threatening to pull out.
The applicants have threatened to pull out if Scottish Borders Council refuses to waive its normal requirement that 25 per cent affordable housing must be provided as part of any new development.
A decision is expected to be made by SBC’s planning committee in March.
Crick Carleton, the planning chairman for Peebles Community Council, said: “The applicant has had to come up with a figure on the new bridge and affordable housing and they’ve submitted that in confidence to the council .”
He added that estate agent Savill’s, acting for the applicants Nottinghamshire County Council Pension Fund, had warned the developers would incur a loss of £1million if forced to provide the affordable housing and would “walk away” from the project.
Mr Carleton said: “We have written a letter of concern on our worries that the planning committee will waive the (affordable housing) obligation.”
Community councillor Lawrie Hayworth wondered whether the issue could be considered by the full council if the planning committee waived the affordable housing obligation.
But Tweeddale East councillor Stuart Bell thought it was only in exceptional cases that issues went to the full council and this application would not be eligible.
Tweeddale West councillor Willie Archibald said: “There is always the possibility of appeals from developers and there are some heavyweight lawyers in the background.”