The city is denying construction of a temporary parking lot for the Upper Fort Garry project.
Friends of Upper Fort Garry want to build a gravel parking lot surrounded by a wooden fence.
The city’s administration has rejected the request, saying it could have an adverse effect and impact safety for the area.
A report to the downtown development committee says the parking lot would have no drainage, insufficient street edge landscaping and the fence would be made from a material not permitted by city rules.
The Friends of Upper Fort Garry have appealed the decision and a hearing could take place later this month.
A park and interpretive centre are planned on the site to preserve its historical significance.