Redland City Council has refused an eight-lot housing development at Thornlands on the grounds that it breaches the South East Thornlands Structure Plan.
Ausbuild hoped to sub-divide the land, zoned Community Purposes, into eight housing lots of between 518sqm and 616sqm and build a "boulevard" road through its proposed 244-lot housing estate, a project approved in November.
Officers recommended allowing the subdivision and road into Ausbuild's residential estate, bordered by Boundary Road and Cleveland Redland Bay Road.
But councillor Julie Talty (Div6) lost her bid to get the application approved with councillors Mark Edwards, Kim Hardman and deputy mayor Alan Beard outvoted.
Division 7 councillor Murray Elliott led the push against the project which included scaling back a 50m-wide boulevard to 30m.
He was backed by councillors Wendy Boglary, Craig Ogilvie, Lance Hewlett, Paul Gleeson and Paul Bishop who agreed that narrowing the 50m-wide boulevard to 30m was grounds for refusal.
Cr Elliott said the 50m boulevard was a condition set out in the structural plan for the area and breaching that was a step too far.
He said the refusal was also based on siting houses within a Community Purposes Zones and would not provide an integrated highly accessible road network in line with the South East Thornlands Structure Plan.
Cr Hewlett, who also opposed the sub-division, said officers should not be recommending residential homes be built in Community Purposes Zones.
A previous development application, which included the "boulevard" area, was rejected by council in November.
Ausbuild removed that area from its last development application for the 244-lot estate, which was approved in November.
The refusal paves the way for developer Ausbuild to appeal the decision in the Planning and Environment Court, where the two parties are already in litigation.
It comes days after Ausbuild granted council a retrospective extension after a decision was deferred at last week's full council meeting.
Ausbuild CEO Ron Loney said he believed the decision, made at a special meeting on Tuesday, was "irresponsible".
"Again ... this is going against the advice of officers and will ultimately be tested in the courts."
Thornlands resident Lynn Roberts said she was delighted the council supported its structure plan, which was drawn up in 2010.
"I would hope the court would uphold the structure plan and deliver a pleasant, green 50m-wide boulevard that would be an asset to the development and save a few trees."