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It will create the town's largest public open space this side of the river.
The developer has made provision for a 'worst case scenario', should government funding for affordable housing become a victim of public spending cuts. Even without government support the site will still contain 21% affordable housing.
South Hams District Council received twice the number of letters in support of the scheme as objections.
A questionaire sent to 4,500 households in the town also drew a 2:1 ratio in favour.
Key differences between the apporved scheme and that rejected last year.