Plans to build 86 homes in Dunchurch were expected to be approved last night.
Rugby Borough Council’s planning committee met at the town hall to discuss the potential development at Dipbar Fields in Daventry Road.
The site would be accessed from the A45/M5 roundabout.
An emergency access would also be put in from Daventry Road. Bollards would be installed to prevent use except when required by emergency vehicles or if the main estate road junction was ever blocked.
The site was granted permission for the development of a 148-bedroom hotel in July 1990.
An access on to the A45/M45 roundabout was also constructed in association with the proposed hotel.
Some neighbours objected to the plans, stating it would put pressure on schools and doctors surgeries, as well as increase traffic and reduce parking in the area.
John Dorrian, who lives in Dunchurch, said rush hour traffic may be an issue for the village.
“You are looking at an extra 86 to 172 vehicles coming through Dunchurch at an already highly congested time period,” he said.
Dunchurch Parish Council said the loss of the potential hotel would mean a loss of employment opportunities.
The parish council also suggested that a metal security fence should be put in place to protect wildlife in the adjoining field. The county highways department said the development could result in more movements through the signal-controlled junction next to the Dun Cow pub than previously expected.
It is proposed to install software and update the signals, which will actively monitor flows and adjust timings accordingly. The cost of the works would be around £80,000 and the applicant has agreed to contribute.
A footpath link would also be put in place to help pedestrians access the village.