Brixham's Chestnut Nursery will be given more time to find an alternative to closure, Torbay Council decided at Oldway Mansion in Paignton on Wednesday evening.
It is proposed that the unit should be closed from August 31 this year unless an alternative solution can be found. Officers say there is declining demand for places at the nursery.
A 300-signature petition was brought forward during the meeting, representing the campaign to keep the nursery open.
There were also moves to extend the deadline for another option to be found to keep the nursery open.
Councillors also agreed a proposal for a store in Torquay Town Hall car park and for improvements to mooring in Torquay's Inner Harbour.
However, discussions on a velodrome plan for Clennon Valley at Paignton were deferred to a later date.
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