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Hythe councillors have rejected the Nickolls development for a “mini-town” of 1,050 homes.
The main concern was traffic on the A259, which is already congested at peak periods.
Highways specialist Margaret Theobald, working for the developers Cofton, said traffic calming including chicanes was the answer.
The town council was also told that plans for a school had been removed, and a leisure centre put in.
For full report from the meeting, see this week’s Kentish Express