The stalling of a plan to erect high-rise buildings at Ellerslie Racecourse has been called a "triumph of common sense" by its opponents.
An independent panel has not approved the Auckland Racing Club's application to rezone a 300m stretch of land beside the front straight at the racecourse.
The club wants to build a hotel and luxury apartments on the land, which is classed as open space. It has called the move an economic necessity in tough times for racing clubs.
The panel said the club had not allayed its concerns over the effect of increased traffic in the area.
Auckland Racing Club chief Chris Weaver said the decision was a minor setback, and not a rejection of the proposed development.
He was optimistic that new information on traffic due back this month would appease the Auckland Council.
"There are a lot of positives and the club is pleased with the progress. We just need to resolve this sticking point over traffic."
A group of residents which has fought the plan for two years said the decision was a satisfactory result.
Ellerslie Racecourse Rezone Opposition Society co-leader Geraldine Taylor said the group was concerned that development on green spaces would create a worrying precedent.
After "two years of hard slog", she expected the fight was not over.
The club planned to appeal by taking the council to the Environment Court.
Most of the 400 submissions on the plan change opposed it.
As well as traffic concerns, some residents opposed the scale of the development. Plans for 12-storey buildings would put several long-standing homes in the shade.
Doubts about the change arose when council tests indicated a high level of lead and arsenic on the proposed site, making it unsuitable for residential activity.
Mr Weaver said development was critical to ensure the course was thriving in 50 years.
"You only need to look across town at Avondale Racecourse, which has shutits doors, to understand the state of theindustry."
Residents welcome rejection of Ellerslie racecourse high rises
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