Officials say social distancing requirements mean they can't accommodate members of the public in the council chamber.
Opponents have welcomed plans to scale back the development, as officials said the potential benefits were not as extensive as first thought.
Thomas Smith said it was the only "honourable" decision after he secured a new job away from the county.
Dozens of businesses have already signed up to the accreditation programme.
The new man in charge of the borough council says he'll talk to anyone who wants to improve residents' lives and aims to build public trust.
An initial consultation is enterting its final few days.
The chains of office changed hands at the council's first in-person meeting for 15 months.
Court papers are likely to be lodged within days, while an investigation into alleged misconduct relating to the scheme continues.
The traditional event looked very different as the borough's new civic - and political - leadership was installed this afternoon.
Ministers have been urged to come to West Norfolk to see the crisis for themselves, as campaigners continued their protest programme.
Community leaders have been accused of abusing their powers by seeking a borough committee debate on the scheme.
Officials say meetings will not return to the authority's headquarters until July.
Four proposals were approved despite a warning they could lead to a continuous holiday season "probably for all time."
Plans for more than 30 flats have been given the go-ahead at the third attempt.
A senior councillor says he had been considering stepping down from his role for some time.