A DEVELOPMENT application for a 23-unit complex planned for the Murwillumbah central business district was withdrawn last week.

CLA Consultants director Campbell Leonard said it withdrew the planned $3.6 million development because of issues with Murwillumbah's development control plan for the town centre.

"We just felt it was looking like it was not going to be successful," Mr Leonard said

"It has to be remembered that this is an expensive process."

Mr Leonard said he would meet with the council on Wednesday to discuss development of the Church Lane site.

The development caught the attention of Tweed Shire Council candidates for the election in September when it was lodged with the council earlier this month.

Candidate and president of Murwillumbah and Villages Cultural and Heritage Association Gary Bagnall said residents close to the development in Church Lane raised concerns about access to the site and the domination of the development on Hospital Hill.

"The council needs to consider if development applications such as these are in keeping with the lifestyle, culture and heritage of our towns and villages," Mr Bagnall said last week before the development was withdrawn.

"Residents have every right to voice their concerns and expect that these are acknowledged and weighted appropriately in all development decisions."

Labor candidate Michael Armstrong applauded the decision to withdraw the application.

"When we met with the local community last weekend there was overwhelming opposition to this type of medium housing development," Mr Armstrong said.

"There is a role for medium density housing but such developments need to reflect the needs of local residents.

"To ignore the wishes of locals jeopardises the merit of these types of applications."

Mr Leonard said he was unaware of the opposition to the development because the application did not reach submission stage before it was withdrawn.