A planning committee has recommended refusal for a residential development and nursing home on a former golf course in Gretna.
Greenbank (IOM) wanted permission in principle to build up to 200 houses and a 100-bed care unit on the site.
It claimed more than 60 permanent jobs would be created and about £500,000-a-year generated for the local economy.
The committee moved to reject the plans but a full council meeting will now decide on whether they can progress.
The developers have offered more than £250,000 towards upgrading water and drainage infrastructure in the area.
They have also said they would construct a "fully equipped" youth centre on the site.
However, planning officers remained unconvinced by the proposals.
They said the development was outside the "settlement boundary" for Gretna and there were not sufficient grounds to allocate the land for development.