Two pubs and a nightclub-turned-children's play area in Exmouth will be demolished as part of new apartment plans.

East Devon councillors on Wednesday unanimously backed a scheme from Stag Inns to see Sam's Funhouse, The Bank and Number 9 Sports Bar in St Andrews Road and Imperial Road demolished.

In its place, a new development would be built consisting of 34 apartments on the upper floors, and a café/bar, restaurant on the ground floor. The site of the Exmouth Young People's Centre, known as The Hive, is part of the redevelopment proposals, but a youth centre on the ground floor is proposed as part of the new plans for the site.

Officers had recommended the scheme be refused on the grounds that a registered housing provider has not agreed to take on the 'affordable' units and the plot sits in a flood zone, but councillors on the Planning Committee unanimously voted in favour of the plans, subject to a legal agreement that guarantees the social housing element of the development will be delivered.

Development manager Chris Rose, explaining why officers recommended it for refusal, said: "The harm from the provision of development in an area of high flood vulnerability and concerns over the lack of interest in the affordable units is considered to outweigh the benefits of the scheme."

But councillor Olly Davey said that he was left conflicted by the recommendation and that if there was never going to be any residential development in the area due to the flood risk, then 'why has this been allowed to proceed this far?'

He added: "It is in a flood zone but there are extra flood defences going in and none of the residential housing is on the ground floor. It is in a sustainable location and there is plenty of evidence of need of this within the town."

Councillor Joe Whibley added that the 35 per cent affordable housing provision was above was required, and said: "The buildings need to go – they don't look great, and if not this development, then what? To reject this now would put off people in future from even trying."

Councillor Philip Skinner called for the officer recommendation to be overturned and the plans approved. He said: "This is in the centre of the town, and will provide affordable homes in the town centre, and I believe we should be getting the vibrancy of our towns going, keeping people in them and keeping them alive.

"I do feel the officers are caught between a balance between policy and actually creating a base whereby people, with an affordable housing balance, can actually live. On the basis of there being no residential on the ground floor, there won't be any flood risk."

Councillor Mike Howe added: "We have a system that has to be followed and we have to set the standard. Everything about this application is absolutely spot-on and we should be approving it in all those cases, but the issue is the affordable housing element and the lack of interest that is confirmed for the affordable apartments, and we should approve this subject to the affordable housing being agreed."

The committee heard that there was insufficient evidence to demonstrate that registered providers would be interested in taking on the affordable units, but that the registered providers were not keen on committing until the agreement had been signed

Councillor Howe added: "We ned to get over the last hurdle and get the S106 agreement in place, knowing we will grant permission to go ahead. It would solve the problem as without the affordable element, it is not a sensible scheme.

"And we are a registered housing provider ourselves so why cannot we do this ourselves as we know there is the need for them, so why cannot we step in as he last resort provider to deliver them?"

The committee unanimously agreed to approve the redevelopment scheme, subject to a S106 legal agreement being signed with a registered provider to deliver and manage the affordable housing element of the scheme.

The scheme would see not only Sam's Funhouse – which used to be Samantha's nightclub – demolished, but also see two pubs – The Bank and Number 9 Sports Bar – knocked down as well.

A statement with the application said that the proposal will provide new facilities for the Young People's Centre, provide apartments in the town centre, and would ensure there was a restaurant and café on the ground floor.