A majority of the Planning Commission on Monday did not recommend approval for an apartment project at Shallowford and Jenkins roads that brought opposition from many neighbors.
It will be up to the City Council to make the final decision on the proposal from developer Travis Fuller of Knoxville, who is building a similar complex in Ooltewah.
Some 230 units are planned on the 20-acre site across from Grace Baptist Academy.
Asked if the scope could be reduced, engineer Mike Price said the seller had discounted the price by about $1 million "to make it work at these numbers."
Joe Schultz, of the Villages at Ashwood, said it would increase the "bottleneck." He said a year ago there were 2,000 apartments within a mile and a half and now there were 3,000.
Neighbors said Jenkins Road is narrow and hilly and is not expected to be improved any time soon.
They said there is heavy congestion at the time school arrives and lets out at Grace.
Mr. Price contended that he drives that route regularly and is able to get through without problems - bringing catcalls from some in the audience.
Mr. Fuller said he planned Class A units with hardwood floors and granite countertops, and he said a number of amenities was planned.
He said rents would be above $1,000 per month.
County Commissioner Joe Graham said he was "regretfully" making the motion to deny, saying it was "a great use for this piece of property."