The proposed aeroplane hangar brewery, restaurant and bar on Berry Mountain has been refused because of traffic and safety concerns.
Cr John Wells moved a motion to refuse the alterations and additions to the 1950s hangar because it is contrary to public interest due to traffic and safety risks.
The building works to the 1950s airplane hangar, located at 466 Kangaroo Valley Road, Berry Mountain, was expected to cost $1.5 million.
Cr Wells said in his motion, "conceptually it's a brilliant idea but geographically it's just in the wrong place."
The development application is reminiscent of a 2017 application to build a 42-cabin tourist retreat at Rockfield Park.
That application, also on Kangaroo Valley Road, was refused by the Land and Environment Court due to similar traffic concerns.
"In both cases the consumption of food and alcohol are involved. In both cases the police were reticent by the development," Cr Wells said.
"In the four years since the Rockfield Park judgement, council has not rebuilt Kangaroo Valley Road, we've undertaken episodic maintenance.
"I cannot therefore in good conscience support this application. It might only result in an extra eight or nine cars per hour on Kangaroo Valley Road, or it may result in an additional accident a year. For me that's one accident too many.
"I note the application provides parking for coaches on a road which has advisory signage suggesting the road not be accessed by cars with caravans. To provide coach parking on a venue like this is fantastic, coaches shouldn't go anywhere near the place.
"I've seen coaches sitting on their chassis on hair pin bends with their back wheels off the ground on this road."
Cr Joanna Gash believed this development application is not comparable to Rockfield Park and it is unfair to do so.
Cr Gash said issues raised in the report have been very "thoroughly addressed by [council] staff."
In response to Cr Kaye Gartner's question about the status of the Kangaroo Valley Road upgrade, Assets and Works Director Paul Keech said he can confidently say the roadworks are not imminent.
However, Cr Andrew Guile said to bring the road to a standard that would facilitate such a large commercial enterprise would require many tens of millions of dollars in investment.
The applicant, Chinamansbeach Pty Ltd, may decide to appeal to the Land and Environment Court although Cr John Levett said it would be highly likely the court would take the same ruling as Rockfield Park as it is the legal precedent.
The motion to refuse application was carried with support from Mayor Findley, Cr Proudfoot, Cr Wells, Cr White, Cr Levett, Cr Gartner, Cr Guile and Cr Pakes. Those that voted against were Shoalhaven CEO Mr Dunshea, Cr Kitchener, Cr Alldrick, Cr Watson, Cr Gash and Cr Digiglio.