An Bord Pleanála has this week said that it has been unable to reach a decision on the €1 billion Corballis East housing development.
Plans for 1,365 housing units near Donabate in north county Dublin, which went straight to An Bord Pleanála as a Strategic Housing Development.
Donabate residents previously told Dublin Live that they had "very serious" concerns about the development.
Fianna Fail Councillor Adrian Henchy said he had reservations about the "enormous" development.
He told Dublin Live: "It's over densified for a small area like Donabate which is a growing area but not for something like that. Outer surrounding areas have developed in the last 20 years but this application's density is far too high and it's too many apartments.
Councillor Henchy said that "many applications" for developments in and around the train station have been granted or are being processed, but that the Corballis East development would not be suitable for the area.
He added: "This development is totally inappropriate for the use of these lands, for the visual amenity it's going to dominate the estuary. I fully recognise that there's a housing crisis but this is not keeping with the other developments in the area.
"It's outraged the local community. I feel there is more of a need for 2-3 bed homes in the area instead. And also, we've long been promised a DART extension through Malahide but it doesn't seem like it's going to happen for a while longer, so we really need the transport and infrastructure sorted out for the area."
Meanwhile, Donabate Portrane Community Council also launched a fundraising campaign to oppose developments in the Donabate and Portrane peninsula.
A decision had on the housing development had been due this week but An Bord Pleanála has advised all parties in a letter that it "has not been possible to determine the case within the statutory time period".
The letter adds that the delay is "regretted" but that this is not legal grounds for questioning the validity of the eventual decision.
The Corballis East SHD is thought to the second biggest such scheme in the State, second only to the 1,600-unit Holy Cross development in Drumcondra which has been given permission.
The Corballis plan was the subject of an oral hearing and this extends the statutory time limit on the board to make a decision from 16 to 24 weeks.
However under the fast-track planning law, the board incurs a financial penalty for not meeting its time limit.
In its letter to notice parties, the board says it will take all steps open to it to determine the application as quickly as possible.
The plan, which was submitted by Aledo Donabate, a company owned by the directors of Dublin builders Cannon Kirk, involves 346 houses and 1,019 apartments as well as three creches and a 13-hectare nature park.
The developers were reported as estimating the cost of construction at over €250 million but that the overall costs would be over €1 billion when site costs and other charges are taken into account.
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