Buncrana Town Council is urging people to consult with planners before submitting applications.
It follows refusal of a planning application for the change of use of an apartment into an office in an area of the town.
However, Cllr Peter Mc Laughlin told the council monthly meeting that the applicant told him the development was to been the precurssor to the creation of up to 15 new jobs, which may now be lost to the town.
Planner Martin Mc Dermott told the meeting the council has indicated to the applicant that there were specific issues, but they can be addressed and he believes a resolution can be found.
He confirmed the applicant had not sought a pre-planning meeting and both he and Town Manager John Mc Laughlin suggested applicants should seek meetings, particularly if there are development and employment issues involved.
Cllr Peter Mc Laughlin says it would be a tragedy if jobs were lost as a result of a planning decision, and he hopes the situation can be rectified: