East Lindsey District Council rejected plans for 59 new homes on the former Louth Town football stadium.
Developer Gleeson Homes submitted proposals to build 21 detached houses and 19 pairs of semi-detached houses on the site of the 1,500 capacity Park Avenue Football Ground.
But council bosses said the development would mean the loss of two football pitches and would have a “harmful impact” on the area.
A decision notice published by the authority added that “no alternatives” had been proposed for the facility.
It said: “The proposal, if allowed, would remove a football stadium site with two grassed football pitches and it would also have a harmful impact on an area of protected open space capable of accommodating a junior football pitch.
“No alternative replacement facilities have been provided nor proposed. No evidence been provided to show that a need for such facilities no longer exists within the town.”
The council’s newly adopted local plan includes a policy which states that any development which results in the loss of sports facilities can be asked to replace them or provide an alternative.
Louth Town Football Club currently play at Saltfleetby.
It has previously proposed to relocate to a new ground on land off Nottingham Road on the Fairfield Industrial Estate.
In August 2016, the stand and former social club was destroyed in an arson attack.
Permission for a football stadium with spectator stands and clubhouse/function room, associated flood lighting, fencing, car parking and vehicular/pedestrian access were granted in June 2014 – however the permission for that site later lapsed.
In January 2016, outline planning permission was granted for 98 homes to be built on the Park Avenue site.
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