An Taisce and a resident of the town had challenged the decision to permit developer Liam McMahon, care of Axis Architecture, Tullamore, to construct the hotel, claiming the structure would increase the risk of damage to adjacent properties when the nearby Barrow River is in flood.

The board ruled the proposed development "premature" in advance of a strategic flood risk management study currently under preparation by the Office of Public Works, Offaly County Council, and Laois County Council which has jurisdiction over the area earmarked for the car park.

In its ruling, the planning authority stated that "having regard to the loss of flood plain represented by the proposed development and the functionally related adjoining permitted car park development, and the location of the site in an area which is at risk of flooding, the board is not satisfied that the proposed development would not in itself and in conjunction with other existing and proposed developments cause a flood risk to nearby properties."

Portarlington is a local market centre on the boundary of Offaly and Laois with a population of some 3,500, roughly divided between the two counties. Local councillors last year voted in favour of a material contravention of the Offaly county development plan to allow the project proceed on a site which had been zoned for industrial use.

The 1.2 hectares site is located in the townland of Kilmalogue, on the east side of Botley Lane, a minor road that runs north from Portarlington in the direction of Tullamore.

"My big concern is that planning permission was granted in the first place, given that this is a recognised flood plain, " says David Orford, who registered an objection with the board. "My home is only a few hundred yards from the site. The area floods on a regular basis. At least several times every year. Nothing concrete has yet been proposed to deal with the whole flooding issue.

Over the past few years a number of flood plain areas around the town have been built on, a situation which obviously makes matters worse in this particular area when there's heavy rainfall.

"Given the long history of flooding in the site area and the problems being experienced in other towns where development has been allowed to take place on flood plains, it simply does not seem logical to support this development. The fact that both councils have publicly acknowledged the potential problems from building on flood plains and the fact that they are sponsoring a major study of the problem in Portarlington, makes it all the more difficult to understand."

An Taisce claimed a hydrological report submitted with the planning application was deficient, especially with regard to assessing future global climate change impact and the cumulative impact of surface water run-off from other lands.

The board expressed concern at the possible impact the development would have on that part of the River Barrow designated a Special Area of Conservation.

"It is considered that the proposed development would contravene an objective of the planning authority, as stated in paragraph 1.2 of Volume Four of the current County Development Plan to conserve and protect sites which have been identified by the Habitats Directive as worthy of protection. The proposed development would, therefore, would be contrary to the proper planning and sustainable development of the area."

"I hope the developers submit another planning application when the flood plain issue is sorted out, " says Offaly PD county councillor, Eddie Fitzpatrick. "I know lot of work has already gone into the project. People here were looking forward to the hotel getting built because it's something the locality badly needs. Apart from anything else it would certainly tidy up what at the moment is a very unsightly area of the town."