BEVERLY HILLS—The Beverly Hills City Council voted against the residential project at 332-336 Oakhurst Drive after opposition from local neighborhood activists raised several concerns.

The multi-family condominium located partially in Los Angeles and partially in Beverly Hills, on the city border between Alden Drive and Third Street, was planned to be developed by Terry Moore, representative of Oakhurst LLC. He planned to build a 26-unit condo that included replacing 3 two-story apartment buildings with 17 units divided between both cities. Moore and a group of investors originally purchased the lot for $7 million in 2013.

The Los Angeles Department of City Planning approved the project in 2015. A local activist group challenged the approval and sued under the California Environmental Quality Act citing that the city failed to consider the environmental impacts of the project. In addition, there were concerns about residents living in the Los Angeles side of the unit to benefiting from a Beverly Hills address, including access to the city’s schools, fire and police departments.

Moore re-designed the project in response to the resident’s concerns. His revised plan included a three-story portion in Beverly Hills and a four-story portion in Los Angeles and overall less units. The Beverly Hills Planning Commission approved the redesign. The Beverly Hills City Council initially considered ways in which the city would be compensated, such as implementing a tax to renters or receiving a payment from the developer. The council voted unanimously 5-0 against the project, citing that it did not reflect Beverly Hills’ interests, the Beverly Press reported.

Los Angeles City Councilman Paul Koretz told the press that Los Angeles will need to figure out what do next in response to Beverly Hills’ vote.