Bridgnorth Town Council's response to Shropshire Council's consultation on its local plan was decided at an extraordinary council meeting on Tuesday.
The council, based upon recommendations from its own local plan working group, said the proposals were unsound on two accounts.
It also stated it thought they were not "legally compliant".
The local plan sets out where housing and business land can be built throughout the county up until 2038, and includes building Tasley Garden Village – consisting of more than 1,000 homes and 16 hectares of employment land to the west of Bridgnorth.
The project has been met with fierce opposition from residents in and around the town, who claim the area and its road network could not cope with the influx of people.
Put forward by Castle ward representative Councillor David Cooper, the motion to send the response to Shropshire Council was seconded by Morfe ward representative Councillor Clive Dyson, and voted through unanimously.
Councillor Cooper said: "It is proposed that we object on three bases.
"That the plan is not sound because it is not justified as being the most appropriate strategy.
"That the plan is not sound because it is not effective and there are doubts about whether it is reliably and sustainably deliverable over the plan period.
"That the plan is not legally compliant, because the process by which it has been drawn up does not reflect established practice about how consultations should be carried out and taken into account.”
He added: "We are asked to set out how we think the plan could be made sound; the answer basically is take a proper look at Bridgnorth’s facilities and infrastructure and to change the plan to what we think the town can realistically absorb.
"I hope that Shropshire Council will take notice and revise its plans."
It comes as Shropshire Council this week extended the consultation period by three weeks.
"I would absolutely encourage people who have not responded already to use this time to do so," Councillor Cooper added.
"I hope this means it's more realistic that Shropshire Council might reconsider their plans."