Distribution giant Gazeley wants to put up seven warehouses and a rail freight interchange, known as Magna Park, across 135 hectares of countryside between Park Farm, Stanground and the train tracks of the Felixstowe to Nuneaton line.

A section is dedicated to Magna Park in Peterborough City Council's 160-page draft Core Strategy, a document that will decide where 27,000 homes are built and 20,000 jobs created over the next 18 years.

Although city leaders have stated that the administration is neither for nor against Magna Park, the scheme was included in the Core Strategy because a development of its size and scale could not be ignored.

Yesterday, about 40 Park Farm residents descended on the town hall to urge the council's cabinet members to change their minds.

Residents are convinced that if the city council stands up to the proposal, it would force Gazeley to re-think its interest in developing the land.

Such was the level of public interest, the meeting started five minutes late as the crowd, many wearing T-shirts bearing the slogan "Stand up for Stanground" crammed into the Bourges and Viersen rooms.

In turn, the three Stanground Central councillors – Irene Walsh, Brian Rush and Marco Cereste – called on the administration to delete Magna Park from the Core Strategy.

They challenged Gazeley's assertion that the development would create 5,400 jobs, raised fears that lorries would leave Stanground gridlocked and questioned the wisdom of building on a designated Environment Agency flood plain.

Despite their pleas, cabinet members confirmed that Magna Park would remain in the Core Strategy.

Defending the decision, Cllr Graham Murphy said it would give Park Farm residents two opportunities to raise their concerns – during Core Strategy consultation events in May and if, or when, Gazeley submits a planning application.

Council leader Cllr John Peach said: "We are trying to give you a better say in what should happen in your community."

He said a decision on whether to include Magna Park would then be made following the results of the consultation, before the Core Strategy is submitted for Government approval next year.

Cllr Stephen Goldspink proposed adding a statement to yesterday's cabinet recommendation to show that the strength of public support in the month since residents found out about the Magna Park proposal had been recognised.

It read: "Cabinet is asked to note that references to the Magna Park development in the Core Strategy preferred options document, does not imply any pre-disposition either for or against the outline proposal.