Dublin City Council will not hand over a large plot of public land at Oscar Traynor Road to private developer Glenveagh.
The developer had been chosen as the preferred bidder to build 850 homes at the site in Coolock - 30pc social, 50pc private, and 20pc affordable purchase. However, councillors voted by a large majority last night to reject the plan, the basis of which was agreed by the council in 2017.
Deputy chief executive of the council Brendan Kenny had urged public representatives to support it or to defer a final decision until January.
He said it would take between five and eight years for any new plan to get to the stage the one on the table last night was at.
However, a Fianna Fáil proposal to defer the vote to allow for further consultation between the developer and the local community and the Department of Housing was rejected. The party ultimately voted against the proposal.
"It would be disappointing and frustrating if this very important project could at this late stage be killed off tonight," Mr Kenny said before the vote.
"Rejection means the entire project would have to be abandoned.
"Coolock has the highest social housing list in the whole country, not just Dublin.
"Our credibility with developers would be seriously dented."
There were heated scenes over the amount of time allocated for the debate ahead of the vote. Due to Covid-19 restrictions, each party in the council only got one minute each to speak.
Fine Gael urged the council to vote in favour of the proposal, with the party's Declan Flanagan pointing out that the site has been derelict for 30 years and claiming local people wanted it developed.
Independent councillor John Lyons was strongly against it.
He said it would be a "gross misuse" of a public asset and that to allow a developer to sell 50pc of the homes at a price he argued would be out of reach of most lower to middle income earners would be "unconscionable".
Councillors rejected the disposal of the land to Glenveagh by 48 to 14 with one abstention.
Among the issues raised by a number of councillors was the similar plan for O'Devaney Gardens, which was eventually approved by the council last November after strong objections.