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Boston Borough Council's planning committee turned down their plans for a new 7,500-seater stadium for the reasons, they had not received all the club's paperwork and had concerns over whether the development would actually go ahead.
Boston believe the move would help them to wipe out debts in excess of £1m and allowing them to increase revenue through corporate hospitality.
Nick Harding, a Boston Borough Council planner told the BBC: "the committee were not convinced that Boston United would complete the proposed development. A draft version of the business plan was submitted many months ago. We assessed that and identified several weaknesses in that document and asked for a new one. This was submitted but came in quite late and we didn't have enough time to thoroughly evaluate it.
We have to decide planning applications for planning reasons. What we shouldn't be doing is letting the club's financial position dictate the physical-built development". The decision left Boston's future in the balance with the Inland Revenue owed a six-figure sum by the club.
Club Chairman Jim Rodwell has said unless he can convince shareholders to back the club, he could not guarantee Boston would have a football team in a league by the end of December.
Of course Boston's position was not helped by their spending in the summer of 2005, which saw ex-Premiership stars Julian Joachim and Noel Whelan join the club who were both on high wages.