The City Council on Tuesday rejected a Planned Unit Development (PUD) for a project on 8.1 acres in Lookout Valley.
Council Chairman Chip Henderson said a number of residents said they were against the PUD at 811 O'Grady Dr.
It was requested by Kristina Mallo.
Terry Reynolds, speaking for Ms. Mallo, said use of a PUD would allow homes to be clustered and leave more amenity space.
He said under current zoning 26-29 single-family homes could be built on the tract. He said 41 could be built with the PUD.
The staff of the Regional Planning Agency and the Planning Commission both recommended approval.
Chairman Henderson said the project was not in keeping with the large lot estates in that area of Lookout Valley.