A Sydney suburb has banned the construction of a synagogue because it could be a terrorist target, a decision that has infuriated religious leaders.

The temple was to be built in Bondi, a short walk from Australia's famous Bondi Beach. But locals worried that the space would pose a security risk to nearby residents, motorists and pedestrians. As evidence of that threat, the council pointed to the synagogue's own design, which included setback buildings and blast walls. They also said the design would have an “unacceptable impact” on the street and neighborhood.

“A number of residents agreed with the contentions … and provided additional evidence against the development of the site," the council said in a statement.

Friends of Refugees From Eastern Europe, a Jewish group, immediately appealed that decision to the Land and Environment Court. The protective design, the group said, was not a commentary on the risk the temple faced, but rather a best practice used at lots of synagogues. It also offered to do a redesign.

But the court sided with the council. In its decision, the court explained that western countries are under threat from the Islamic State and that the potential of an attack in Australia is considered “probable” by government officials. The court also noted that the designs would serve only to protect those inside the building, not those outside.

The announcement comes just days after Australian authorities foiled a major terror plot to blow up an airplane using a homemade explosive device and to release poison gas. But it may reflect something uglier too.