Plans to build 19 new homes on the site of the former Salston Manor hotel site in Ottery have been shelved.
A full application was submitted for the Grade II listed building for the homes and extension works to create three extra flats.
The Herald reported earlier this year how the plans were criticised by Ottery Town Council for a lack of affordable housing included in the development.
At a planning committee meeting held in February, members agreed they did not have a problem with the conversion of the Grade II listed building, but stated their preference towards new homes being built instead.
The majority of the planning committee opted not to support the plans.
Developer Salston Manor Developments Ltd has permission from a previous application to create 27 apartments and retains the right to build them if the new proposal is refused.
The new alterative application included parking, a swimming pool, gymnasium and tennis court.
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