CALGARY -- Canmore council has rejected an application for a large commercial and residential project that has faced vocal local opposition.

All six councillors voted against the proposal, with Mayor John Borrowman casting the lone vote in favour.

The plan was to go to third reading two weeks ago but was delayed after the developer asked for more time in addressing a series of significant amendments to the plan passed by council in late April.

The amendments would have doubled the amount of housing deemed "affordable" from 10 to 20 per cent. It also sought guarantees that commercial space would be built early in the plan which was expected to take up to 30 years to complete.

"We have some very clear needs in the community that we've been discussing for years," says Borrowman. "Certainly housing is a critical situation here, our housing is out of touch."

Three Sisters Mountain Village, the developer of the project, has sought to develop the land for decades.

"This was never supposed to be a decision about whether development would proceed, that decision had already been made by the NRCB in 1992," said Chris Ollenberger, director of strategy and development with Three Sisters Mountain Village. "It was supposed to be a decision about how it would proceed."

Ollenberger says he's disappointed and disheartened by Tuesday's decision after he says the company put every effort into addressing the needs of the town and following the guidance documents provided by staff.

"We worked in good faith with the town and administration and council, we followed direction and guiding documents, front he town administration council including 5 years of community engagement," he said.

He now says legal options are being considered, including an appeal to the province to step in through the Municipal Government Board.

"Unfortunately we're going to have to go down a different path and to make sure that the rights that Three Sisters already has for development in these lands can continue to be respected."

Councillors cited concerns over impacts on wildlife, the overall community and potential liabilities of building on lands undermined by historic coal operations.

Canmore's last coal mines closed in 1979. They left large underground chambers supported by timbers that were meant to eventually rot away, causing slumping on the surface.

Three Sisters Mountain Village conducted extensive research into the location of the tunnels and chambers and says it took the hazard into account in its planning.

Opponents to the project called the decision a victory, but expect there will be more to come on the valuable land.

"Town council today in rejecting it also made mention of a more meaningful public engagement, a visioning process for the community, and maybe even some hints at the community trying to offer to buy some of those lands to put into conservation," said Karsten Heuer, an author and vocal opponent.

"We've been seeing these proposals come forward for the past 30 years, and there will be others," said Heuer.