An Coimisiún Pleanála has refused permission for a service station to be redeveloped at the site where ten people lost their lives in Creeslough, Co Donegal, more than two years ago.
The company's planning application proposed to demolish the existing building and erect a new building to include a shop, a post office, a beauty salon, fuel pumps and memorial features.
Two legal firms, Damien Tansey Solicitors and Phoenix Law Solicitors, representing bereaved family members appealed the decision to An Bord Pleanála, which has since been replaced by An Coimisiún Pleanála.
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In a statement, Phoenix Law said the families affected by the tragedy welcomed the decision.
It said that given the ongoing criminal investigation into the explosion, the proposed development on the site was "deeply inappropriate".
"The families believe the ground should be treated with dignity and respect, given the scale of loss and trauma suffered.
"The initial decision to grant planning permission rubbed salt in the wounds of the families," the statement said.
An Coimisiún Pleanála outlined two reasons and considerations as part of decision to refuse permission for the proposed development in a letter issued to Donegal County Council.
An Coimisiún Pleanála said, having regard to the existing character and the prevailing pattern of development in Creeslough, if the proposed development was permitted at this prominent location that it could "negatively impact on the wider, long-term regeneration and renewal of the village".
It considered the proposed development would be contrary to the Donegal County Development Plan in respect of inappropriate layout and building design in the context of the existing streetscape.
An Coimisiún Pleanála also said, having regard to the recent history of the site, it considered the location of the proposed memorial features to be inappropriately sited "in the contest of the significant pedestrian and traffic movements" that would take throughout the site when operational.
It said: "This raises serious concern in relation to both the safety for those visiting the memorials and also the inappropriate siting of the memorial within the development (as amended itself)."
The correspondence also noted the response that the applicants were informed in writing by An Garda Síochána that the on-site investigations in respect of the tragedy had concluded.
Those who lost their lives were Robert Garwe and his five-year-old daughter Shauna Flanagan-Garwe; Catherine O'Donnell and her 13-year-old son James Monaghan; Jessica Gallagher; Martin McGill; James O'Flaherty; Martina Martin; Hugh 'Hughie' Kelly; and 14-year-old Leona Harper.
An Coimisiún Pleanála was not expected to decide on the planning proposal until 14 July.
During the statutory appeal period, An Bord Pleanála received six appeals. Two appeals were valid. Four were deemed invalid.
The two valid appeals were submitted on behalf of bereaved family members and survivors by Damien Tansey Solicitors and Phoenix Law Solicitors.
Senior Counsel Damien Tansey told RTÉ News the families he represents welcomed the decision of An Coimisiún Pleanála.
"Our clients considered it insulting, disrespectful and premature to contemplate building a structure of the kind envisaged on land where their loved ones recently lost their lives," he said.
Mr Tansey said that one would expect that whatever ultimately emerges will "have the blessing, the agreement and the consent of the families who lost loved ones and the countless other people who suffered horrific and catastrophic injuries".
Darragh Mackin of Phoenix Law said: "Today's decision has restored faith in the rule of law, where victims are treated with dignity and respect.
"We continue to call for a full public inquiry into the circumstances surrounding the tragedy. The families remain committed to seeking truth, accountability and justice."
An Coimisiún Pleanála was established in line with the phased commencement of the 2024 Planning and Development Act, replacing An Bord Pleanála.
