THE controversial multi million dollar development planned for Lot 490 at Kingscliff has been scrapped by developers Leighton Properties.
Residents who rallied against the development said they were pleased with the outcome.
Save Lot 490 Coalition spokesman Jerry Cornford said decision by Leighton appeared to be a reflection of the economic climate.
The planning department last year recommended approval for the resort on Casuarina Way.
However, they reduced the number of originally proposed units and bungalows from 180 to 127 because of concerns over its environmental impact.
Residents aired their concerns at a public meeting last July with Planning Department representatives Paul Forward and Abigail Goldberg .
They claimed the $105 million Lot 490 development would impact directly on sensitive habitat and that an endangered Stone Beach Curlew had been seen and photographed close to the development site.
Marine Action Conservation Society (MACS) spokesman Michael Manley said he is very pleased that the development has been abandoned.
Tweed Shire Council will discuss soon what options it could recommend to the state government for the site.
Cr Warren Polglase said he was happy with the outcome.
"It's a good outcome for us on the Tweed," he said.
"The Leighton development didn't provide what we are looking for."
He said the council was looking at two options for the crown land.
"We can convert it into a family friendly caravan park or leave it as an open green space," he said.
"I prefer the first option, as it would provide affordable holidays for families and would provide the revenue needed to fund coastal care projects."