A new €100 million commercial and residential development in the centre of Athlone has been turned down by An Bord Pleanála.
The six-acre development, which featured 31 retail units, 211 apartments and 835 car-parking spaces was yesterday refused permission by the board.
The development would have involved knocking down the landmark Royal Hoey Hotel.
Athlone Town Council had decided to grant planning permission for the development, which would have provided 250 construction jobs over the next 18 months, and 400 full-time jobs after completion.
The proposal was led by Gallico Developments.
Several multi-national chains, including Marks and Spencer, Superquinn, Next, NV, Mothercare, Pamela Scott, Monsoon, Nature's Way and H. Samuel were understood to be considering taking units in the shopping centre.
A local dentist, Mr Michael J. McGrath, who lives adjacent to the site, was the sole objector.
An Bord Pleanála ruled that the development would "constitute an inappropriate approach to the necessary redevelopment of this important town-centre site; would seriously injure the amenities of the town; and would be contrary to the proper planning and sustainable development of the area."
It also ruled that the development "would not meet the needs of the existing community; promote social integration; provide an adequate level of residential amenity for occupants of the residential units; or play its full role in the regeneration and upgrading of the town centre".
The town mayor, Mr Kevin Moran, described the decision as "a major setback for Athlone".
The mayor of Westmeath, Mr Egbert Moran, said he was "devastated" by the news and hoped the developer could reapply.
"I hope the plans can be rejigged," he said.
Gallico Developments has pledged to look at alternatives.
In a statement, the developer said it wanted to reconcile what it believed was a proven formula for urban regeneration with the findings of An Bord Pleanála when it refused permission.
"We intend to study carefully the findings of An Bord Pleanála with a view to examining whether it is possible to match the commercial realities of redeveloping the town centre with the reasons and considerations given in the decision of An Bord Pleanála," a statement said.