A decision to allow a holiday and residential development in Porthmadog has been overturned by a special meeting of Gwynedd councillors. A previous plan for 30 homes at Y Wern manor was turned down and an appeal refused by an inspector.
The new plan covered the inspector's concerns. Officers said the applicant was likely to win a new appeal.
But the central planning committee said no, despite being told there were no planning reasons to turn it down.
Local councillors had rejected the plan for 26 holiday and full-time homes at the listed manor because of highways and language issues.
Appeal costs
In the event of an appeal, council officers warned, the council might be liable to pay all the costs, which could be �15,000 and �50,000.
Council leader Richard Parry Hughes said he was against the development because of issues over access to the site as well as the effect it would have on the Welsh language.
"We have to accept there may be an appeal and perhaps costs, but we could also win that appeal," he said.
"If we lose this appeal, however, I am worried about the effect it would have on planning in the county.
"There are many old buildings in the area and it will be an enormous problem if they were turn into houses, especially permanent homes," he added.
Councillor Thomas Evans, who holds the development portfolio, said he accepted the decision of the council in spite of the fact he had supported giving the development planning permission.
"These kind of planning applications create a lot of emotion," he said.