Section 106 money is so-called, because it comes from that part of the Town and Country Planning Act 1990. Under the legislation, developers can contribute funds for community amenities or infrastructure, as a way of making their proposed developments more acceptable in planning terms.
You find the full technical explanation here
More than 1,300 new homes have been built in East Leake in recent years, many as a result of developers winning planning appeals. As a result of these developments, the village is entitled to £286,000 in section 106 payments, which are held by Rushcliffe Borough Council. East Leake Parish Council is proposing to put this section 106 money towards the cost of constructing the new Pavilion.