If you are an exhibitor, and you attend your local kc, or you have attended meetings with the council, you would know both these people. The 3/4 acre has an expensive purpose built facility. I have no idea what the other has, apart from some kennels and runs. You said the council told you you could have more than 8 dogs. Perhaps they approved you for 8 because that was what you own and the other people for more because they had that number, and the council thought all of you had excellent facilities? Area doesn't seem to be a particularly big factor.
I have presumed that you were confused, and not accusing me of telling lies? I know these people because I show, and I recently met them at a specialty, and I considered moving there. the information from the council "computed" with what I was told.