Kensington Developments Ltd applied to Fylde Council for outline planning permission to transform the Hollywood Nurseries site, Whitehills Road, Peel, into residential use.

But the application, which was due to go before yesterday's meeting of the development control committee, was recommended for refusal.

Kensington want to put up 96 new homes – comprising three-storey apartments, two-storey detached houses and mews properties – on the six-acre site.

But council officers, in a report to the committee, stated the proposed development was contrary to both the Fylde Council Local Plan and the Joint Lancashire Structure Plan.

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Westby with Plumptons Parish Council rejected the plans and notified Fylde of its concerns in April.

These included it was "out of character" for Westby parish; in a flood area; extended the urban space from Blackpool to Westby and that there were no regular transport links.

Residents, though, had organised a petition in favour of the development because they preferred housing there instead of more commercial buildings.

Ward councillor, Conservative Barbara Douglas, said before the meeting she had been contacted by a resident who supported the scheme.

She said: "I've had someone that lives down there who phoned me about it, but they are in favour of it. I know the parish council have put in for refusal."

The Campaign for the Protection of Rural England opposed the plans on the grounds it was "an inappropriate location in the countryside".