Noise, pollution and 24-hour a day HGV movements would make the lives of residents a misery if new homes were built in Enterprise Way, say Caistor Town Councillors.
Members discussed the planning application to build six new homes and one industrial unit on land near Sealord last week.
Mayor John Burns-Salmond said: “This is prime land for development of industry for start-up businesses.
“If we want Caistor to develop we want it to have small industries. If that was the only area of land left to build on I could understand it, but it’s crazy.”
Coun Steve Millson said: “There is a sign next to the lot of land that says industrial estate, it could not be clearer land for that type of development.”
Coun Julia Savage added: “We do not need the housing. There is already unfulfilled housing provision in Caistor.”
But Coun Jo Hodson, who is also an architect, said the land was not suitable to develop for business.
“That strip of land would be very difficult to build industrial units on because it is so long and thin, it may come back to us in some form for housing even if it is not approved now,” she said.
Councillors unanimously decided to oppose the application on the grounds that it is not in keeping with other development in the area and would be better used to create employment opportunities.
The application will now go before the planning authority, West Lindsey District Council.