The proposed gypsy and traveller site is off Shaw Lane, Carlton, and nearly 100 residents turned up to a public meeting with council officers, local councillors and cabinet member Coun Linda Burgess.
The meeting, organised by Coun Ken Richardson in Carlton Village Hall on Monday, descended into arguments when people complained if the privately-owned site was developed, their houses would be devalued and there would be an increase in petty theft.
They were told by Coun Burgess, who is the cabinet spokesman for development, environment and culture, said: "I have to tell you that some of the things you are concerned about might verge on racist. I'm only saying what I believe."
Her comments were met with laughter and jeers.
Full story in this week's Chronicle.