The Planning Commission on Monday declined to grant a variance for new homes on small lots on a steep slope on the side of Lookout Mountain.
UCI LLC had made a variance request at 5404 and 5408 Glen Falls Lane.
The required minimum lot size is 7,500 feet and minimum width is 60 feet.
The applicant, represented by Justin Tursin of Chazen Engineers, wanted four lots - including two on Alabama Avenue and two on Glen Falls Lane. The largest size was 4,209 square feet and the smallest 3,452 square feet.
The same developers built homes on Alabama Avenue below and were seeking to add more new residences on the back side of the properties.
The Planning Commission was told that the request was in line with homes across Glen Falls Lane that had also been built on small lots.
But neighbors said they were running out of parking spaces on the narrow road - since they had to park on the street due to the lack of lot parking.
Catherine Dupree said approving the new homes "would create a parking nightmare."
A resident of nearby 54th Street, noting the historic nature of the community, said, "It's just becoming obnoxious to get so many new homes in St. Elmo."
Another resident said the new construction is bringing silt on homes lower down the mountainside.