housing and business complex have been turned down by the Development Applications Board.

In doing so the Board went against the advice of Planning Department technical officers who recommended approval.

Restaurateur Carol West closed the Bailey's Bay restaurant in December after she said it was operating at a loss. She is trying to sell the three-acre property, site of Leamington Caves.

The Board said her application was contrary to sections of the Bermuda Plan 1992 Planning Statement, and the density of the planned units would have a "detrimental impact on the cave''.

Mrs. West had submitted renovation plans to create four apartments on the top floor of the restaurant building and offices on the ground floor. The property also has three cottages.

The plans for the renovations stated the office was to be used by an unnamed business with seven employees.

The plans also said the use of the cave was still in question but talks were underway with the Aquarium to keep it open.