Bid to quash 260-home Kirkbymoorside plan fails
Planning permission for a 260-home development, granted when a councillor mistakenly voted in favour of the proposal, will not be revoked.
The application was approved in August after Ryedale District Councillor David Cussons "pressed the wrong button" on an electronic voting system.
On Monday, a motion to overturn the decision to allow building work on land near Kirkbymoorside was defeated.
An application for a judicial review of the decision has been lodged.
The motion to revoke the decision was put forward by Liberal councillors Sarah Ward and John Clark, and included a request for the Conservative-led council not to contest a possible judicial review.
An amended motion giving the council's chief executive authority to "respond to the judicial review in the best interests of the Council and residents of Ryedale" was passed in its place.
A report presented to the council said revoking the order could leave the council with a compensation bill of up to £5m.
The scheme allows for up to for 210 houses and 50 apartments to be built near the North Yorkshire town.
Cllr Ward said she was "disappointed" with the result of the extraordinary general meeting.
She added: "I've always been against the proposal.
"Anything that can increase the size of a small market town by 30% in one fell swoop is clearly not right for that town."
During Monday's meeting Cllr Cussons issued a formal statement apologising for his mistake.
He said: "This was a genuine error on my part, and I repeat that my intention was to vote against the application."
An application for a judicial review was lodged on 11 October.
A council spokesperson said its officers were seeking legal advice.