The city rejected Friday morning the planned redevelopment of the Earls on Main Street restaurant.
City planners said the building proposed for the property was not tall enough for downtown.
It also had issues with the surface parking that would remain on the site.
The city wants mixed used buildings that house more people in the area with underground parking, parkades or parking behind the building.
Architects for Earls argued at city hall that the building is more like a two-storey structure and that it does comply with the city's vision for south Main Street.
