The company behind a Morrisons store development has again had its application to renegotiate its planning permission terms deferred.

Essential Land was originally given the nod to build the supermarket and housing in Sittingbourne in 2012 as long as it honoured a section 106 agreement – in which local authorities give planning permission in return for developer contributions.

These usually include money, work or materials towards local community initiatives such as housing, schools, roads, arts and culture. But the retail giant said the deal was “burdensome”, and that without changes the development was not viable.

It wanted to cut the proportion of homes being built near the shop classed as affordable from 30% to 10%, and the money it pledged towards heritage initiatives, up to £215,000, be dependent on the profits made from the housing development.

Essential Land wanted to remove all financial payments, apart from its contribution to primary and secondary schools.

Swale council’s planning committee delayed a decision on the changes when it met in September to allow more time for negotiations. The proposal finally went back to members on October 30 after Essential Land reconsidered its original offer, but councillors still were not happy.

Cllr Ghlin Whelan (Lab) said: “We are being asked to approve a revised section 106 agreement which pays little heed to the needs of residents and [is] more to do with the profit margins being demanded by the developer.”

He put forward a motion not to accept the suggested phasing of tree planting and green spaces before the occupation of the housing, and insisted on a car parking plan before building and a commitment to the heritage centre.

Cllr Whelan said the council should accept: a further reduction in the number of affordable homes, provided the company honours other conditions; a 70/30 split on affordable housing/shared ownership; monitoring fees for officers; the cost of providing wheelie bins and improvements and CCTV in the Laburnum Place underpass.

Councillor Andy Booth seconded the suggestions. It means a decision has been delayed to allow Essential Land, ward members and the chairman of the council’s planning committee to discuss its developer contributions face-to-face.