Plans to redevelop an old nursing home in Gwynedd have been deferred by councillors because they are worried about the impact of new homes.
Gwynedd planning committee discussed the application for 26 holiday and private flats at the listed Wern Manor at Porthmadog.
Councillors want a holiday flats-only development if possible.
A previous plan for 30 holiday and private homes was turned down and an appeal refused by an inspector.
Recommended for approval
The owners want to redevelop the site because of the costs involved in adapting the building to continue as a nursing home.
Gwynedd council officials had recommended the latest scheme for approval after an assembly government inspectors' report at an appeal, which the developers lost.
Officials recommended that the latest plans include conditions that the historical garden would be protected and the 14 holiday apartments would be only used for three months a year.
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In effect they are creating a new village and we have no control over it at all
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This was backed by councillor Michael Sol Owen who told the Dwyfor area planning meeting they should accept the plans.
He said: "If we refuse this application this time, as it stands, and it goes to appeal again I think we will lose with costs against us". But the majority of councillors opposed the new plans.
Councillor June Jones said: "This will have a serious impact on a rural area, in effect they are creating a new village and we have no control over it at all."
Council leader Richard Parry Hughes said to allow the development would set a dangerous precedent.
"If we allow this development then anyone with a farmyard and enough buildings can apply to do something similar".
He suggested the council should challenge the planning inspector on this point, and insist on a holiday flats-only development.
Council officers will now go back to the developers.
The nursing home owners were not available for comment.