A £30 million leisure development can go ahead after the Government refused to hold a public inquiry.
Developers Citygrove can start on the new 11-screen cinema, bars, restaurants and new sports centre proposed for the King Alfred Leisure Centre in Hove.
Westbourne ward Tory councillors Denise Cobb, Ted Kemble and Brian Oxley asked the Government to call in plans for the controversial seafront centre which were approved by Brighton and Hove Council in June.
It was the second approval by councillors. They had to look at it again following a legal challenge by Odeon Cinemas which runs the Kingswest Centre in Brighton.
Yesterday the Government ruled the council was free to decide.
But opponents of the scheme said they were bitterly disappointed and felt the Government was abandoning residents who would have to live with the consequences for years to come.
Environment Minister Nick Raynsford said: "We decided not to intervene when the proposal was previously under consideration by Brighton and Hove Council.
"I have looked again at the proposal and have given careful consideration to the points raised by the councillors but have concluded that the scheme has not changed to any significant degree.
"The proposal does not raise any significant planning issues of more than local importance that would justify the Secretary of State's intervention.
"Brighton and Hove Council is therefore free to determine the application as it thinks fit."
Coun Oxley said: "We are bitterly disappointed the Government did not call in this matter.
"This is not a minor application affecting a street or even a neighbourhood. It is a major application which will have an impact on the lives of several hundred people for years to come."
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