Councillors voted 6-3 against the motion, which had been lodged by Cr Frank Schofield.
Voting was the same as when the proposed service station development modifications were tabled last month.
Supporting the rescission motion were Cr Frank Schofield, Deputy Mayor Kellie Crossley and Cr Leanne Mulham, while Mayor Ashley Hall and Crs Ken Bates, Craig Druitt, Linda Fawns, Shirlee Burge and Shannon Sampson voted against it.
The debate again centred on whether sufficient assessment had been undertaken regarding the potential impacts of diesel-fuelled heavy vehicles operating adjacent to approved childcare, seniors living and aged care developments.
Cr Schofield stressed he was not seeking to prevent the service station from proceeding.
“I'm not trying to refuse this DA. I'm not trying to say that this service station should not go ahead,” he said.
“What I'm trying to say is that we need to seek the information to make us comfortable with this decision.”
Cr Schofield argued council should require an additional "offensive industry" assessment examining day-to-day impacts such as emissions, noise and odour, particularly given the site's proximity to sensitive land uses.
Cr Mulham supported the rescission motion, questioning whether the modification had been adequately assessed.
Cr Crossley supported her fellow councillors, and also argued the introduction of 19m articulated vehicles represented a significant change to the previously approved proposal and warranted further investigation.
Speaking against the rescission motion, Cr Druitt said he had confidence in the assessment undertaken by council staff, and also pointed to the economic benefits of redeveloping a long-vacant site.
“Don't lose sight of the fact that building, KFC as it sits, has been there for 15 years without anyone in there.
“It's an absolute disgrace,” Cr Druitt said.
Cr Fawns warned against creating unnecessary barriers for investment.
“I support developers coming to our community and opening a business and becoming part of our community,” she said.
Cr Hall argued there was no evidence the planning assessment had been inadequate and said councillors should have confidence in the planning process and the advice of council staff.
He said several aspects of the proposal had already been scaled back during the assessment process, including the removal of B-double access, restrictions limiting access to 19-metre articulated vehicles and reduced operating hours.
“If we continually move the goalposts by demanding additional studies and reassessments in the absence of clear evidence that something has been missed, we create delays, additional cost and uncertainty that discourages investment.”
“It's (the former KFC building) been there 15 years derelict, and we want to see something happen there.”