The City Council voted 6-2 to deny a special exceptions late night entertainment permit for Meo Mio's Cajun Restaurant across from Cummings Cove subdivision in Lookout Valley.
The permit would have allowed serving of alcoholic beverages and live entertainment after 11 p.m.
Close neighbors at Cummings Cove said it was noisy at the previous Patrick's and they had enjoyed the peace and quiet since it closed.
Brian Sabo said the proposed cajun restaurant is not a nightclub. He said 80 percent of the revenue is from food.
He said there are no outside speakers.
Mr. Sabo said it was planned normally to close at midnight, though he said it might stay open later for special events such as class reunions.
There are two Meo Mio's Cajun Restaurants in West Tennessee.
Councilman Jack Benson said he felt allowing the operation would lower nearby property values.
He noted that the distance to the nearest residence is only 75 feet. The former rule for the distance to the nearest home was 750 feet, but the council passed an amendment to let it be less in certain cases.