An Bord Pleanála has rejected a planning application for a major retail development on the former fruit of the loom site in Buncrana.
The application, which had been approved by the local planning authority, had been broadly welcomed by Buncrana Town Council as being a positive development for the area.
The proposals involved the redevelopment of part of the former Fruit of the Loom site to provide a retail/commercial development with a gross floor area of 9586 sq.m.
The development would have involved the demolition of some of the existing industrial buildings and the redevelopment and re-use of the remainder.
It was initially proposed there would be a major anchor tenant as well as 10 commercial units, a cafe, filling station and almost 450 car parking spaces - those proposals were significantly curtailed in re-submitted plans.
A number of parties objected to the development and having considered them, An Bord Pleanála refused permission.
An inspectors report concluded that a requirement for additional retail space in the town had not been established.
It is considered, therefore, that the proposed development would be contrary to the proper planning and sustainable development of the area.