The proposal was to develop more industrial space on the western side of the existing estate; which claimed to bring with it 400 local jobs.

Speaking on behalf of the developer, urban planner Kim Samuel urged the council to "not let down it's community" and "practice responsible decision-making".

"Council should think very carefully about your decision tonight, the future of Tamworth is in your hands," she said.

"New technologies and industries are emerging every day and they are going to regional locations where they have local support and impartial decision making; places like Parkes that have a special activation precinct focused on future growth."

The council heard that both parties had been unable to come to an agreement on an easement.

But, Cr Mark Rodda said he believed the project should be sent to the Department of Planning, Industry and Environment (DPIE) for a decision.

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"Furthermore, not approving this matter it may appear the council has a conflict of interest given its interest in developing land such as the global gateway park industrial estate, while deciding to refuse support for this planning proposal," he said.

"Over the last few years I've been perplexed by the ongoing delays imposed on the proponent ... particularly when other projects in the vicinity have promptly been approved.

"We like to say that we are open for business in our region, but unfortunately, that is not the public view based on decisions like this and sadly what is at stake here is local job opportunities; around 400 according to the proponent."

The council voted not to make changes to its local environment plan, effectively knocking back the development.

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