If a housing development on Louth Road is approved by planners Horncastle Town Council will be given £500 per home built by the developers.
Larkfleet Homes, based in Bourne, has submitted plans for 80 homes to be built on a field to the west of Louth Road and told the council in a presentation last week that they will give £500 per home built to the local authority.
If the project is approved by developers and 80 homes are built on the site the town council could receive as much as £40,000 from the Lincolnshire-based company.
The developers made a presentation to councillors last Tuesday night and answered questions that the town’s representatives had on the proposals.
Concerns raised by councillors included the footways near the site, lack of jobs in the town and amenities in the surrounding area such as schools and doctors places.
A spokesman for Larkfleet told the council: “We agree that the footway is narrow and there are some maintenance issues. But new footpaths are built to different standards.”
The spokesman added that when the company looks at the jobs market they take the county into account saying that there is considerable potential in Lincolnshire for economic growth.
Chairman Fiona Martin said that money given by a developer to the NHS to improve services in the town should attempt to ensure that money handed over stay in the town rather than “disappear into a big pot.”
A council spokesman said: “The council received a presentation on the outline planning application that has been submitted by Larkfleet for a development on Louth Road.
“The town council will formally consider and then comment to East Lindsey District Council on the planning application at the council meeting on April 8.”
An ELDC spokesman said: “When planning applications are located and then approved in flood risk areas, to satisfy national planning advice there has to be some wider community benefit that outweighs the flood risk issues.
“One way this can be achieved is for the developer to make a contribution towards community projects usually following consultation with the town or parish council.”