Wexford developer William Neville & Sons has been refused permission for the third phase of a housing development at Swiftbrook Mills in Saggart, Co Dublin because it was looking to build on a site that had been reserved for a primary school.

In its refusal, South Dublin County Council stated in a note to the developer that any future application must address "the cumulative deficits" in terms of community infrastructure, schools, crèche, public open space and playground, arising from development of phases one and two of the Millrace housing development".

The council turned down the proposal for 196 apartments and houses because it said part of the site was to be reserved for a primary school under the Saggart Local Area Plan 2000. This plan identifies the need for at least an eight-classroom school because the existing national school is at capacity.

William Neville and Sons has already built 469 residential units in the first two phases of the development which was launched in 2004. Designed by architects Anthony Reddy and Associates, the grounds of Millrace encompass the ruin of Swiftbrook Mill. This former Clondalkin Paper Mills site was originally the residence of the family of Dean Jonathan Swift.

South Dublin County Council says its policy is "to develop community facilities in tandem with housing". It also criticised the quantity and quality of the open space provided and says community infrastructure, including play areas, are substandard and don't comply with the County Development Plan 2004-2010.

Another reason for refusal was that the proposal excludes the Proctor's cottage which "specific local objective 101" proposes should be developed as a tourist facility that would feature industrial heritage and include live-in accommodation for a manager.