The shelving of a proposed skate park at Bicheno by the Glamorgan Spring Council is a heavy blow for young people, says a community group on the area.
Bicheno Community Development Association received in-principal support from the council for the development before a no permit approval was rescinded earlier this year.
On Tuesday, the council voted five to three to shelve a proposal which would have allowed the BCDA to submit a grant and development application until proper long-term asset management and financial plans can be developed.
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The Bicheno community has raised $50,000 over several years for the project.
BCDA president Jenny Logie said it seemed like the council was intent on creating obstacles instead of working with the group.
"Council decided to delay any decision on the matter for an indefinite period - despite it falling clearly within their 'core business' as defined in their new strategic plan," she said.
"It seems like a pretty concerted effort to stop it."
She said the decision had left the community questioning whether the council had the ability to fulfil its obligations under the Local Government Act.
Deputy mayor Jenny Woods and councillors Cheryl Arnol and Mike Symons voted against the motion.
The trio argued the proposal was in the core business of council and that no significant financial burden would be incurred from providing consent.
"This is one of those community-lead projects which has been on the books for going on 20 years," Cr Symons said.
"The BCDA has done a great job in bringing this to council with a concept plan, with community approval, all the things that should make our job quite easy.
"I just feel it would be a terrible injustice to this group, they have already had an approval which was rescinded, the disappointment from that in the community was palpable."
Concerns were raised about the financial implications of allowing the grant and development applications to be lodged.
Mayor Debbie Wisby said if consent to lodge was granted and the development application didn't receive any representations it would be consent to construct.
"It is an ongoing liability to ratepayers," She said.
She said she was supportive of the community but anything new which was built would cost ratepayers money.
"The only way we can pay for it is increased rates or stop doing what we are doing in some way," Cr Wisby said.
"I'm not supportive of increasing people's rates to cover the cost for these sorts of facilities at this point."