A recycling company's plans to extend a scrap metal site have fallen at the first hurdle.
European Metal Recycling (EMR) wanted to expand its operations at Kingston Wharf, Shoreham Harbour.
But neighbours whose homes overlook the busy port feared having a scrap metal mountain a quarter of a mile long near their homes.
At Adur District Council's planning meeting, councillors followed officers' recommendations and voted against the plan. Their decision will be forwarded to West Sussex County Council, which is expected to make a final decision within the next few months.
EMR has used the extra area for stockpiling processed scrap metals ready for export for the past year without permission. But it wants permanent permission to use the extra space as an overflow to improve efficiency, make it easier for up to 150 lorries to enter the site and increase car parking.
Shoreham Beach Residents' Association objected to the proposal, saying the towering scrap heap would dominate the riverside.
It also pointed out fewer boats were being used to ship the material away for recycling.
Grandmother Margaret Bedding, who has lived in her Harbour Way home for 30 years, said the district council's decision was good news.
She said: "Now it's a case of just wait and see. Boats used to come and pick up the scrap but now they don't seem to do anything. The pile gets higher and higher, it's a ghastly thing to look at and it's a health hazard."
District councillors rejected the application on a number of grounds.
They agreed with planning officers it would clash with local plans to redevelop the area for business, residential and leisure use.
They were also concerned about the environmental impact on new residents at a nearby development.
They said an extension would contradict West Sussex County Council's draft waste local plan and were uneasy about having a hazardous substances site next to the development unless the Health and Safety Executive had no objection.
Councillors also criticised the absence of noise or visual assessments and information on any further traffic as a result of increasing the site by at least 50 per cent.
A spokeswoman for EMR, which has offered to put up screens in a bid to hide the heap since the planning application was submitted, said: "We're disappointed the local council feel unable to support the application. However, we are confident a mutually-acceptable outcome can be agreed."
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