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Blue Sky has been trying to open a youth home in Stephenville, but the town council rejected its application to operate in a residential neighbourhood. (CBC)

The head of a company that operates youth homes hopes a recent victory in Marystown will bode well for plans in a town on Newfoundland's west coast. 

Blue Sky has been trying to open a home in Stephenville — but the town council has rejected its application to operate in a residential neighbourhood.

Earlier this week, the Eastern Newfoundland and Regional Appeal Board overturned a decision by the Marystown council that wouldn't allow Blue Sky to operate a youth home in a residential section of the town.

CEO Anne Whalen said the Marystown ruling has set a precedent.

"The reasons for us being turned down in Marystown were very similar to the reasons we were turned down in Stephenville," Whalen told CBC.

"So, we're hopeful that if it does in fact go to appeal, that the board will, again, rule in our favour." 

In early June, Stephenville council voted against Blue Sky's proposal to open and manage the home. The facility has four bedrooms, which would house youth who have been removed from their homes. 

Whalen said she will likely appeal that decision as well, based on her success in Marystown.

She said towns are wasting time and money rejecting applications for such facilities. 

"When you look at the struggles that municipalities have, it seems to me that it's an uphill battle certainly for them to win the appeal. They might want to reconsider," Whalen said. 

Whalen said she's open to discussions with the Town of Stephenville to save both sides the time and cost of an appeal.