Plans to build 550 houses on the outskirts of Nairn – described by protesters as “a weapon of mass destruction” – have been refused planning permission by Scottish Government Reporters.
Jubilant campaigners against the Sandown development said officials had made the right decision and it was “a victory for common sense”.
Deveron Homes spent two years and a six-figure sum developing the bid for the western edges of the town, in consultation with Highland Council.
But councillors refused permission for the £100million project in May 2009 amid concerns that roads, schools and sewage works in Nairn would not be able to cope.
The firm appealed and a public inquiry was held in Nairn in March.
In their decision, the reporters, Malcolm Mahony and Alasdair Edwards, said the proposals did not comply with the local development plan, could have an adverse effect on the character and appearance of the area and that the scale of development would be excessive for the location.
Their ruling said: “We appreciate that it is frustrating for Deveron to face refusal having conducted negotiations with council officers and other interested parties extending over some 17 months, and culminating in a favourable recommendation to the relevant council committee.”
But they said they agreed that the proposals would have meant overdevelopment which was inappropriate for the location and inconsistent with the character of Nairn.
No one from Deveron Homes could be contacted for comment yesterday.
Its proposals for the new estate would have included 138 affordable homes, some rented and some shared equity, with a mix of flats, semi-detached and terraced housing.
The firm also planned a wetlands park, community facilities and business park, and said the scheme would have created more than 500 jobs.
It attracted opposition from residents from the outset, however. Critics claimed the development was too large and that infrastructure, including sewage, roads, education and health facilities, would not cope with the influx of people.
During the public inquiry, the Nairn Residents Concern Group (NCRG) said the consultations run by the developer were “sterile, meaningless and invalid” because Deveron Homes was unwilling to vary the number of houses it wished to build.
Yesterday, a spokesman for the group said the reporters’ conclusions chimed with their own feelings about the development.
John Hart, of Sandown Road, said: “The decision to dismiss the appeal is a victory for common sense.
“We would hope that the Highland Council will now seek to ensure that any development on Sandown Common Good Land is in keeping with the reporter's observations and that it especially retains the common good aspects of the area, that are clearly defended in the local plan.”
He added: “This development was a weapon of mass construction, whose destructive potential has been unearthed, fortunately before it destabilised the Nairn environment and its gateway.”
John Mackie, of Nairn Suburban Community Council, said: “Everyone I have spoken to is delighted.”
Mr Mackie, of Seaforth Road, added: “This was too big for Nairn. They were talking at one point about four-storey buildings on the outskirts of the town. They would not have blended in.
“We want the area developed but not in this way.
“Unfortunately the developer would not listen to what people were saying.”
Council convener and Nairn councillor, Sandy Park, who gave evidence at the inquiry, said he was pleased with the decision but raised the point that the town would have to adapt in future.
He added: “Obviously there will be development there some day and we would like to see that. It is an important gateway to Nairn.”