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The application to build a new leisure centre on The Green has been dropped from Hythe's planning committee agenda.
Councillors on the town's plans and works committee were due to sit this morning to discuss the application.
But the application has been pulled from the agenda to be discussed in full at next month's full council meeting.
Town clerk Nick Hilditch confirmed it had been pulled to allow more councillors and members of the public to discuss the issue and attend.
It comes after a motion asking Hythe councillors to oppose development on The Green was defeated last week.
Concerns were raised by several councillors during last Thursday's meeting that if they voted for the proposal it would shut down debate on the leisure centre plans .
The motion was raised by Cllr Paul Peacock asking councillors to agree "not to grant use of any of the open space recreational area known as The Green for the building of a replacement swimming pool".
It comes after Shepway District Council submitted a planning application to itself two weeks ago to build the new leisure centre on The Green after cabinet members voted to approve the new location from Princes Parade.
Residents packed into the Town Hall to watch the debate with the vast majority against building on The Green.
Others were left outside the chamber and even on the High Street listening to the debate on a public address system brought in specially for the meeting.
Presenting the motion Cllr Peacock said: "Other places are far more suitable. SDC think they can get it for the price of a loaf of bread.
"Is that a reason to let them have it? No.
"The people have started their own green revolution and I don't blame them."
Every indication of support against developing The Green was met by cheers from the public gallery.
One cyclist riding up the High Street before the meeting shouted "power to the people!" in support of the crowds outside the town hall.
"The people have started their own green revolution and I don't blame them." Cllr Paul Peacock
Cllr Alan Ewart-James and Cllr Malcolm Dearden, who both sit on Shepway's cabinet but withdrew from the vote when cabinet decided to put through the plans supporting The Green on November 4, raised concern the motion would stifle debate in future.
Cllr Ewart-James said: "Obviously this is an emotive subject. The problem is this motion shuts down all discussion about planning permission of The Green.
"If we accept this motion we will not be able to do this.
"I'm not sitting here supporting this [planning] application. I'm not sitting here opposing it either."
Cllr Dearden added the covenant protecting building on the land should be strengthened.
Cllr Laura Sullivan said she received 300 responses from people with no one in favour of The Green.
Cllr Wendy Peacock added: “The covenant doesn’t matter because the most important thing is the view of the people and those who have come here tonight.
“People have said it’s their green. It’s been special to a lot of people for a long time.”
The application had been due to be presented to the town council's plans and works committee today but will now be put forward at the council's next full meeting on December 17.
"We risk not having further debate about whether this is right or wrong, yes or no." Cllr Alan Smith
There was a sense of disbelief at how quickly the situation has got to the stage of a planning application having been submitted and that HTC has been given a deadline of January 31 to decide whether they would allow SDC to take over the land.
Kelly Kelly, vice chair of the Hythe Green Preservation Society, said she could not believe in 15 days the cabinet had agreed the location, a planning application had been submitted and that it was now on the table at Hythe Town Council.
Cllr Reg Belcourt added: "It's our duty to make sure that one of most important events to be decided for Hythe in the last 100 years. This should be debated fully and with all the information."
Cllr Alan Smith said: "There's two things that concern me. We risk not having further debate about whether this is right or wrong, yes or no.
"If there's any impact on financial that it goes to Finance and General Purposes committee and this stifles that."
The motion was defeated 10 votes to six.