A plan for 200 homes in Alford, which was described as “unacceptable” by a senior East Lindsey councillor, was refused by the local authority.
The proposal was submitted for land south of Tothby Lane by St Andrews Healthcare to East Lindsey District Council.
But councillors refused the plan over concerns of the “adverse impact” the homes would have on the area.
It comes after the council delayed making a decision on the plan back in November 2018.
Deputy leader of the authority, Councillor Graham Marsh, had previously objected to the proposal and described it as “unacceptable”.
He said the development did not comply with the emerging plan, and was not sustainable.
But, Samuel Lake, who spoke on behalf of St Andrews, said the proposal made for an “extraordinary opportunity” to create a “sustainable community”.
“The proposals will deliver a number of significant benefits to the local area and the wider district,” he said.
Under the plans, 10 one bedroom, 40 two bedroom, 80 three bedroom and 70 four bedroom homes would have been built.
However, Councillor Marsh said he had “not had one person express support for this application”.
“I have great fears there will be a serious accident, if not a fatality because of the volume of traffic and the risks taken by people crossing the road in this area,” he said.
East Lindsey District Council said in a decision report: “The proposed development would, by virtue of its scale, visually and prominently intrude into an area of established open countryside resulting in an unacceptably adverse impact on the character and appearance of the area.”
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