A decision to refuse planning permission for Nude Food Dunes in St Ouen's Bay has been upheld.
The owner of the former restaurant at La Pulente wants to turn it into a holiday let.
The idea sparked a protest on the beach, and has raised concerns from members of the public that it would be the first step towards it becoming a private home.
Plans for the partial change of use were submitted in August 2024, nine months after the business closed suddenly.
These were turned down, but that decision faced a challenge.
An independent inspector considered the appeal and recommended planning permission be granted.
However, the Environment Minister has announced it has been dismissed.
A government statement says:
"...the Minister was satisfied that there were sufficient reasons not to give effect to the inspector’s recommendation."
It adds that the Minister recognised the proposed development could give new use to a vacant building and the prospect of reopening the toilets and the operation of a cafe.
Deputy Luce also agreed with the inspector's assessment that it would not harm the landscape. The building is in the Jersey Coastal National Park.
However, 'on balance' the Minister has decided that the proposed development conflicts with polices in the Island Plan - the framework for what is built where.
Deputy Luce says the case has not been 'sufficiently demonstrated' that the site cannot be used for the purpose it has existing permissions for - that is, solely as a eaterie.
"Additionally, the design and layout failed to optimise the quality of the proposed uses for the site."
The owner submitted a fresh application in January 2025 which received 74 public comments. It is yet to be determined.
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