Fears that Denbighshire could be hit financially mean a rejected  133-home housing estate will be back before councillors next week.

The plans would see the homes built on land at Mindale Farm in Meliden near Prestatyn.

Applicant Penrhyn Homes was refused permission for a similar development in  2017 and revised plans went to Denbighshire’s planning committee in September only to be voted down by members.

Despite the rejection, officers were worried that the council could take a big financial hit if it lost the case on appeal and had to pay legal costs.

As a result, the council’s cabinet member with responsibility for housing referred the matter to officers who have asked the committee to reconsider its decision.

Local objectors, including from Prestatyn Town Council, raised fears that local roads and infrastructure would be unable to cope with the size of the development.

A spokesman for Penrhyn Homes said: “Committee members are well aware of the planning officers report and recommendations but are still stating in their opinion there are still issues with highways and drainage.

“However, these are not facts, they are just committee members’ opinions.

“We rectified the access to the site so it does not cause direct disruption to local residents and satisfied all highways issues.

“We have also satisfied all drainage issues from the previous appeal which Waterco and the lead flood consultant from Denbighshire Council both agree.

“We have issued further advice from our barrister which concur with the planning officers’ recommendations and have stated if the committee members refuse or defer the application we will be lodging an appeal immediately which there will be a costs application to support with costs of up to £150,000 for Penrhyn Homes advisers and another £30,000 costs for the council to represent themselves at the inquiry. The committee members are fully aware of these costs.

“If the applications go to appeal, the costs of £180,000 will be unfortunately made against the council and if successful the costs will be paid from public money.  This could have a potential impact on future local rates.”

He added: “We are local builders and we employ local tradesmen. This development will be a great development for the local jobs and the economy.

“We are here to build new houses for young families for the local area where there is a large demand.

“We are also contributing to the local primary school, Welsh language and providing affordable housing.”