A housing development planned for Kirk Michael has been turned down by an independent inspector, a decision agreed to by the Council of Ministers.
Heritage Homes wanted to build 100 properties on land at Douglas Road Corner.
The whole scheme has been argued over for some years, with access through the school's playing field being a main bone of contention.
An agreement was reached between the Department of Education and Heritage Homes which meant the developer was given less than an acre of land at Kirk Michael Primary School's playing fields, in exchange for two acres from behind the building.
The inspector, Alan Langton, said the overall scheme had 'much to commend it', but added that the road access should be determined only following a firm decision 'one way or the other regarding a bypass'.
Mr Langton said objections over foul sewage and surface water drainage were unfounded, that parking provision was suitable and that the landscaping would be good.
He did flag up 'some disquiet' about the different levels of density and 'sense of place' that would be found in different areas of the scheme.
But it's the major issue of the bypass which has persuaded him, and CoMin, to reject the overall scheme.

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