THE application to turn part of a Heatherbrae restaurant into a hotel with gaming machines and a take-away liquor counter was refused at last week's meeting of Port Stephens Council.
The Motto Farm Motel on the Pacific Highway made the application which was supported by council planners.
Councillor Glenys Francis successfully urged refusal citing concerns such as the potential for an increase of alcohol related crime, traffic conflicts, the high number of gaming and liquor places in close proximity and a lack of public transport.
She said Hunter New England Health had flagged Raymond Terrace as a vulnerable community and it was not in the public interest to open another pub with poker machines.
The refusal did come with some uncertainty regarding what would happen if the application was taken to the Land and Environment Court.
In 2009 the council lost a case in the same court over opening hours at the Bull and Bush hotel at Medowie.
"Our council staff recommended this for approval...and my concern is that when it goes to the Land and Environment court, which it will, they will look at the recommendation," Cr Ken Jordan said.
"If residents don't want this they need to get behind it because its not over, there is more to come."
Cr Bruce MacKenzie said some of the concerns from Cr Francis would be "laughed out of court" but he still supported the motion.
The motel's major shareholder John Edmonds was unavailable for comment.