Scarborough Council had intended to let its development agreement for the Sands project in the town’s North Bay with Benchmark expire on December 31, before the company launched a legal challenge.
Benchmark has been responsible for the £14 million Alpamare waterpark in North Bay, made possible by a £9 million loan from the council, and has also overseen the building of a pub and Premier Inn hotel on the same site.
However, long-running plans to build a cinema, restaurants and flats on the site of the former Atlantis waterpark nearby have repeatedly stalled since 2017.