An Bord Pleanála has turned down planning permission for a retail centre outside Donegal town which has been valued by its developer at €35 million.
Westmeath-based Bennett Construction had been given approval last March for a two-storey local centre, comprising offices and retail units and supermarket, close to the Killybegs road junction outside the town.
However, this was appealed successfully by a rival developer, Kenney Construction, which secured planning approval earlier this week from Donegal County Council for a €100 million retail, leisure and apartment complex near the town centre.
The appeals board has given two reasons for its decision to refuse permission. It says the proposed development would "not be within comfortable walking distance" of the town centre and it is not satisfied that alternative sites closer to the "existing retail core" have been examined.
The proposed development would be contrary to the provisions of the Retail Planning Guidelines for Planning Authorities in relation to the orderly and sustainable expansion of the existing retail core of the town.