PLANS for the redevelopment of the old woollen mill site in North Tawton were given the thumbs down at a West Devon Borough Council planning and licensing meeting on Tuesday.
The proposals included the erection of 40 new residential units and the conversion of three buildings to provide an additional 19 residential units and a community building.
Chief planning officer Jane Hart said: 'Case officer Anna Henderson-Smith was extremely reluctant to recommend refusal.
'She had agonised over her decision.'
The councillors at the meeting were pleased to see plans to renovate the site, but agreed with the case officer's assertion in her report: 'This is an important and challenging allocated site which officers would support coming to fruition, but not at any cost.'
The councillors highlighted several issues with the plans submitted to them. One key concern was the cul-de-sac of nine houses proposed for the rear of the site, to be built on a raised level to try and prevent flooding.
Cllr Mandy Govier questioned the need for the cul-de-sac.
She said: 'The nine houses in the cul-de-sac don't seem to be in keeping with the heritage site and the rest of the proposal.
'If I was a resident of North Tawton I'd be very disappointed if this committee went through with these plans. It gives nothing to North Tawton.'
Conservation officer Graham Lawrence said: 'In essence, I feel that all the buildings currently on the site are a major heritage asset, not just the main listed buildings.'
'I also think the road planned to run through the development would be detrimental to the site's character.
'The new buildings would affect the views from public viewpoints, the Tarka Trail in particular.'
Concerns were also raised by councillors over the lack of affordable housing and benefits to the community, and effects on parking, traffic and the school.
The committee heard that residents had concerns over parking, lighting, water supply and the strain on the village's school and infrastructure.
North Tawton Town Council said that were the proposal to be refused, members would be 'extremely disappointed'.
It is hoped that negotiations on the plans can continue to prevent further deterioration of the old mill and provide the building with a use once again.