Extended Stay America, a national hotel chain catering to the long-term business traveler, proposed building the hotel on the north side of Plaza Boulevard, west of Interstate 805. But residents of the area opposed the project, worrying that it could be abandoned as a business hotel and turned into transient housing.

Both the Planning Commission and City Council denied the project in February initially. But the council agreed to give the company more time to design the project to make it agreeable to area residents.

On Tuesday the council voted to deny the project.

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