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A public inquiry may be held into the plans to homes, a hotel, conference centre and visitor centre on two beauty spots in Dover.
Last night, district councillors approved the proposals by China Gateway International to develop the Western Heights and Fathingloe.
But on the day of the meeting, the council received a letter from the government saying that the Secretary of State would be examining the evidence for and against the development plans, and might make the decision himself as to whether permission should be given, following a public inquiry.
It followed representations from campaigners who say the development would spoil the area of outstanding natural beauty.
The proposal involves more than 520 homes, a 90-apartment retirement village and a health centre built at Great Farthingloe Farm, along with the conversion of a thatched barn to a pub or restaurant, a stable block to a retail shop and a farmhouse to a bed-and-breakfast.
At the Western Heights, the plans include more than 30 homes, a 130-bed hotel and conference centre and conversion of the Drop Redoubt to a museum and visitor centre.
Among those opposing the plans were the National Trust, Kent Wildlife Trust and the AONB Executive. A petition containing more than 570 signatures, was also submitted to the council.
Protect Kent, part of the Campaign to Protect Rural England, blamed the proposal on what it described as an “unrealistically high housing target” set by the district council.
Protect Kent campaigns officer Andrew Ogden said if it went ahead it would set a precedent and he described the council's decision to give approval as "disappointing".
Full story in next week's Dover Mercury.