The proposed €100 million development of Kilkenny city mart has had a major setback following the decision by the county council to refuse planning permission for the NCT centre in a new agri-retail park planned by the mart.
The mart planned to move out of the city centre and turn the existing mart into a mixed urban centre with commercial, leisure, tourism and residential quarters.
However, it may not be able to move existing tenants to the agri-retail park following the refusal by the local authority.
The mart wanted the car test centre to transfer from Barrack Street to a new retail park off the Carlow Road. Mr Michael Parsons, chairman of the co-op which runs the mart, described the refusal as "shocking".
The council said the development would contravene an objective of the city's development plan.
Mr Parsons countered that the mart had acquired the new Leggettsrath site, off the Carlow Road, after consultation with the council.
"This was to ensure that we could relocate our livestock mart business and our tenants to facilitate the redevelopment of Barrack Street.
"We are shocked that Kilkenny County Council, having created the zoning to accommodate the mart's relocation and development plans, has now decided that the application for a building for the NCT centre, one of our key tenants, will not be accommodated within the zoning," Mr Parsons said.