Preston City Council's planning committee voted unanimously to approve an application to extend the time limit of the existing outline planning approval for 650 homes, 9,000 sq ft of commercial use, and community facilities at the Whittingham Hospital site.
The Manchester-based team at Nexus Planning provided advice and acted as agent on behalf of the Homes & Communities Agency. The updated permission will allow development of the site to progress in a series of phases. The Section106 contribution will go towards construction of the Broughton bypass.
Justin Cove, associate at Nexus Planning, said: "The renewal of the planning permission has been a complex process, requiring us to act within the constraints of the extension request, while establishing a clear phasing strategy to enable the scheme to be delivered effectively.
"We look forward to continuing to work with the HCA, Preston City Council and Lancashire County Council and helping to bring the remaining residential and commercial development opportunities at Whittingham Hospital forward to the market."
Deborah McLaughlin, executive director for the North West at the HCA, said: "It is great news that the planning permission has been extended at Whittingham Hospital. The site is a complex, but this brings us a step closer to seeing work start that will bring much-needed new homes, improved community facilities, transport links, and open spaces to the area."
Taylor Wimpey was selected as preferred developer in 2007 and received consent for 650 homes in 2011. Taylor Wimpey will deliver the first 150 homes but the HCA will seek other developers for the remaining 500 units.