An Bord Pleanála has given permission for the conversion of a protected structure on the quays in Ballina, Co Mayo, into a 24-bedroom hotel.
The Ice House, built in 1836, was once the home of Moy fishery managers.
The hotel and spa, proposed by Dublin-based accountant Pearse Farrell, has been opposed locally since first mooted last year. Mr Farrell bought the Ice House for more than €1 million from the North Western Regional Fisheries Board.
Seven appeals were lodged with an Bord Pleanála last May, after Ballina Town Council granted planning permission to Mr Farrell to develop the derelict building, which is on the banks of the river Moy, into a multimillion hotel and spa. The residents have concerns about traffic and the safety of pedestrians, noise pollution, and parking.
Fianna Fáil town councillor and chairman of the Concerned Residents Group Willlie Nolan said yesterday: "We are completely dumbfounded at today's result and we believe the issues we raised were whitewashed by the board, and not taken seriously enough.
"The decision also raises questions about the validity of the planning process when An Bord Pleanála can decide to overrule its own inspector, who was, in my opinion, the only person to visit the location and understand the impact locally of this development.
"We will be meeting as concerned residents later this week, to see if there are any options now open to us, as we need more time to study the decision in full and look more closely at the conditions imposed.
An Bord Pleanála attached 19 conditions to the proposed development. Its report said: "in deciding not to accept the inspector's recommendation to refuse permission, we have concurred with the local planning authority, and consider the development is in accordance with the policies and objectives of the Ballina town plan and because of the high quality of the architectural standard and scale and nature of the development, it is appropriate for this riverside location."
Mr Farrell said: "We are enthusiastic about this development and I regret that at the initial stages maybe I did not consult enough with local people, but that was because of the pressure to get the application in."