I think they should have put more effort into choosing a site that was already zoned for cemeteries.   I'm doubtful that most people would want to live next to one although I'm sure some wouldn't mind as the vote showed.  It's a better result than having to spend a billion moving gas plants that voters didn't want in their backyards.  A referendum there before contracts were signed might have saved some money.
What's wrong is falsely labeling this as racist or anti-Muslim without more evidence.   There was discussion and people voted.  That's democracy.