Plans to build more than 60 homes on a former social housing site have been lodged with South Tyneside Council.
Last year, council bosses agreed to sell land at Farding Square, Marsden, South Shields, for residential development.
Demolition of the 72 flats previously on the site started in 2016 to make way for modern housing.
Gentoo Homes has now lodged a planning application for the site - aiming to build a 62-home estate, with new roads and parking.
Planning documents state that six affordable homes will be provided as part of the development - with the developer paying around £75,000 to the council.
This payment will form part of a ‘section 106 agreement’ and to help the council reduce potential impacts on biodiversity, loss of open space and provide play equipment.
More affordable housing or section 106 cash would reduce the profitability of the project to Gentoo and the council, a report states.
A planning document adds: “The scheme has a developer and landowner who are ready and willing and able to deliver.
“Gentoo Homes are committed to delivering a high-quality residential development at the site, which will provide quality and needed family homes in a sustainable location.
“However, in viability terms the scheme is unable to deliver any further affordable housing provision.”
If approved, the estate would include 19 two-bed, 33 three-bed and 10 four-bed homes, and it is hoped all properties would have a driveway or garage.
Around 23 visitor parking spaces will also be provided, with the development expected to provide a jobs boost during the construction phase.
Planning assessments say the development is not expected to have any impact on noise or congestion.
Last year, land agent GVA began marketing the 3.73-acre site in a ‘prime sought-after coastal location’ and invited sealed bids to be submitted by potential developers.
The six low-rise blocks which housed the 72 two and three-bedroom flats, before demolition, would have needed about £7million to bring them up to modern standards.
People can make comments on the Farding Square plans until Tuesday, February 26, with a final decision resting with planning officers.
For more information, visit www.southtyneside.gov.uk/article/35961/Search-planning-applications and search planning ref: ST/1107/18/FUL
Chris Binding, Local Democracy Reporting Service