A NORTH Yorkshire restaurateur has been left "devastated" after his plans to redevelop his business were turned down following a public inquiry.

Leo Campagna has seen his scheme to demolish his property in Knaresborough and build eight new homes refused by an independent inspector following the inquiry in Harrogate.

Mr Campagna had wanted to demolish his 19th century home and neighbouring restaurant, Da Mario's - but the plan has led to a dispute which has rumbled on for more than two years.

Mr Campagna said: "I really can't believe it, I am absolutely devastated.

"I am ruined, the system has ruined me. You just can't beat the system, it is just too strong."

Over the past two years Mr Campagna has made a series of applications for the development on Waterside, by Knaresborough viaduct, but the plans attracted local opposition.

The public inquiry held in January examined two applications for the development. The first proposal was a conservation application to demolish the original buildings, including his home, a Georgian cottage built in 1836, and his neighbouring Italian restaurant.

The second proposal was for the building of two houses and six flats.

But in a report issued by the inspector, both plans were rejected.

Harrogate Borough Council planning official Neville Watson said: "Our council had originally refused permission so I defended this position to the inquiry. This decision has seen the council's position vindicated and exonerated as we intended."

Jane Rance, of Knaresborough Action Group, was also satisfied. She said: "We are obviously delighted with the decision.

"We are very pleased if the plans are finally over now, but we will have to wait and see if this is really the end."

English Heritage, guardians of conservation areas, had also opposed the plans. Spokeswoman Alison Fisher said: "The refusal of the plan is good news in our view. We opposed the application because of the designs of the new development, we thought they were completely inappropriate. If Mr Campagna comes back with a more suitable design we will consider it, but at the moment we are glad it will not be allowed to go ahead."

Updated: 10:11 Friday, March 21, 2003