REDROW Homes has resubmitted plans for the redevelopment of the Helsby and Longden site on Bridge Lane, Frodsham, to provide 14 houses and 45 apartments in two and three-storey blocks.
The company previously failed to gain permission to redevelop the haulage yard for a similar number of homes.
The earlier application led to objections from Frodsham Town Council which submitted 10 main concerns including three-storey development, the reinstatement of a public footpath, drainage, loss of privacy, excessive noise, inadequate parking and overlooking.
Cheshire County Council public rights of way officers said an application would be necessary to divert the public footpath and Vale Royal housing officers suggested 30% of the dwellings should be affordable housing.
A neighbour in nearby Francis Street raised concerns about loss of privacy, light and property value.
The development would have involved the demolition of buildings on the site, Vale Royal planning committee was told in a report.
The haulage company, which operates up to 47 HGVs on a 24-hour basis was seeking to expand and had secured alternative premises which would not lead to any job losses.
A tyre-fitting business and a joiner on the site would be relocated and Frodsham Business Centre would remain.
The yard is on a main road on the east side of Frodsham town centre and has good access to public transport, shops and other services, according to planning officers.
Councillors were told they should consider the implications of the development on the regeneration of Northwich and Winsford.
Redrow said it was willing to provide a range of affordable housing and landscaping.
Recommending the application should be refused, planning officers accepted the development of the site would represent an improvement but said the homes would contribute to the oversupply of housing in Vale Royal.
The planning committee, which considered the application at the request of Councillor Nigel Griffiths refused the application due to local concern regarding loss of employment, traffic and over development.