Fred Dimbleby speaks to the developers who are disappointed by the decision.
Plans to build nearly 240 homes in St Helier on Broad Street and Commercial Street have been rejected by the government despite the approval of an independent review.
Jersey's assistant environment minister says the proposals exceeded the height limit for buildings in the town centre.
This, according to Deputy Hilary Jeune, would be "overbearing and oppressive and of detriment to the amenity and character" of Commercial Street.
She also says it "fails to make a positive contribution to the local character and distinctiveness of the place".
However, the independent inspection of the plans concluded that the "height of the development would not be excessive or inappropriate in this particular case".
It also found that it would be be built in line with the "character and appearance of the area".
Jersey's Chief Minister says she was disappointed to hear the project had been halted, but that wasn't in her power to intervene in the process.
In a statement, Deputy Kristina Moore wrote: "This is an important development for St Helier and the island, improving an area of our town and providing hundreds of much needed homes".
The project, known as Les Sablons, also included plans for a 103-room hotel, some cafes, shops and a restaurant.
Le Masurier, the property developer behind the £120 million proposals, called the government's decision a "sad day for St Helier".
Its managing director, Brian McCarthy, says the development would have reduced the island's housing issues, created 150 full-time jobs and boosted tourism due to the building of the hotel.
He also says the company had been open to making some of the homes affordable and were looking at ways to help islanders get on the property ladder.
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