Donald Trump’s dream of building the “world’s finest golf course” on sand dunes in Aberdeenshire appeared shattered last night after councillors threw out his £1 billion plan.

The American property tycoon was considering his position after councillors decided on a casting vote to reject his plans for two championship golf courses, a five-star hotel with 450 bedrooms, a golf academy, almost 1,000 holiday homes and 500 private houses on 1,400 acres (560 ha) of coastline north of Aberdeen.

The chairman of the committee that made the decision said that Mr Trump was holding a pistol to their heads and that councillors were being asked to sell their souls.

The councillors were particularly concerned that part of the complex would be built on a site of special scientific interest containing sensitive sand dunes, and also that so many holiday homes were proposed. Wildlife groups and some residents were among those opposed to the resort.

In a statement issued by his organisation in New York, Mr Trump appeared to be on the brink of walking away from the development. He has said repeatedly that he has options on land elsewhere in Europe — including Ireland — and that he would not hesitate to take his project there.

“We are surprised by the decision,” he said. “It would have been a great development. We are considering an appeal and also considering doing something very spectacular in another location. Sadly, it will not be Scotland.”

George Sorial, one of Mr Trump’s most senior advisers, appeared to go further, suggesting that the group had already decided to walk away. He said: “It doesn’t look like we are going to be doing a major development project in Scotland.”

As efforts were made to keep Mr Trump’s plans in Scotland, political fall-out worsened. Although officials at the Scottish Executive said that Alex Salmond, the First Minister, could not intervene in a planning matter, he is believed to have expressed support privately for the resort.

The decision to reject the planning application came after more than 2½ hours of heated debate by the 14 members of Aberdeenshire Council’s infrastructure services committee.

Only last week the application was approved by councillors in the area where the course would be sited, and most observers expected the infrastructure committee simply to rubber-stamp their decision. But yesterday’s vote was deadlocked at 7-7 and it required the casting vote of the committee’s Liberal Democrat chairman, Martin Ford, to settle the issue.

As part of a lengthy planning process, Mr Trump’s proposal was expected to gain approval locally before being referred to ministers at the Scottish Executive.

Amid accusations of petty-mindedness and parochialism, Mr Ford said: “The golf course can go somewhere else. We are having a pistol held to our heads — this is a form of moral blackmail.” He added: “We can only have it [the golf course] if we sell our soul. I don’t think we should sell our soul.”

Although Mr Trump has the right to appeal to ministers at the Scottish Executive, the process would almost certainly involve a public inquiry that could sit for many months. The Executive does not have the legal authority to override the councillors’ decision.

Brian Adam, the Scottish nationalist MSP for Aberdeen North, said that the decision was “a bitter blow” to the people of the North East of Scotland. He said: “I am absolutely certain that the people of the North East are overwhelmingly in favour of this development and will, like me, feel let down by this decision.”

The RSPB, which had objected to the development, said: “The destruction of part of Aberdeenshire’s beautiful, unspoilt coastline has been recognised as too high a price to pay. We hope that Scotland will continue to offer and promote the best golf courses in the world, but not at this expense.”

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