Major plans to redevelop St Helier's waterfront and build nearly 1,000 new homes have been denied planning permission.
The decision was made by Jersey's Environment Minister, along with a panel made up of the Assistant Environment Minister and chair of the Planning Committee - Deputy Hilary Jeune, and Constable Philip Le Sueur.
Deputy Jonathan Renouf says the decision came after an independent planning inspector, Phillip Staddon, recommended the application should not be accepted in its current form.
Mr Staddon recommended the application should not be thrown out altogether to allow for the Jersey Development Company to make adjustments ahead of a second "mini-planning inquiry". However, the panel decided a new application would need to be submitted.
Deputy Renouf said: "This development is of huge significance for our island and its residents. Therefore, it needs to be an exemplar.
"The Determining Panel believes the Waterfront is an opportunity to achieve something special in terms of urban design, public realm, and sustainable transport.
"However, the current application fails to meet the required standard."
Some of the reasons behind the decision include an ongoing disconnect between St Helier's town centre and the Waterfront, too many flats facing noisy roads and tall buildings, and a lack of affordable housing.
In a statement, the developer said: "Jersey Development Company is obviously disappointed to receive a planning refusal to its outline application for the Southwest St. Helier Waterfront.
"The planning application was submitted following planning guidance from the planning department and substantial engagement with the public.
"JDC will await receipt of the Inspector’s report and the decision notice of the Minister’s panel then review and consider our next steps."
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