Plans for the two-stage development of a £120m Heritage Quarter in the heart of Gravesend have been refused by council's independent regulatory board.

Gravesham Borough Council (GBC) is working alongside developer Edinburgh House on the scheme, which boasts more than 20,000sq ft (1,858sq m) of restaurants and leisure facilities. A new hotel, a town square, a children's play area and better links to the town's river walkway also form part of the plans, as well as a new and enhanced St Andrews Gardens, housing and retail units.

The first phase had been due to be completed in mid-2012, but GBC leader Mike Snelling said the regulatory board's decision had left a "shadow of uncertainty" over the regeneration of Gravesend. Snelling said: "The democratic and impartial planning process has produced a decision on this important application, which was one of the cornerstones of the regeneration of Gravesham.

"It remains to be seen now whether the developer appeals this decision and what the outcome of that appeal will be."