Proposals to convert town centre offices into flats have been refused by Blackpool Council.
Plans had been submitted to alter four floors of Forsyth House, above the Litten Tree, in Queen Street, and use them as 31 one-bedroomed flats.
But council transport chiefs warned about the lack of parking in the area for potential residents, and planning consent has been refused.
Coun Ivan Taylor, ward councillor for Claremont which includes the site, was among those who raised concerns about the scheme.
He said the area, which is a hub for pubs and entertainment venues, was not the appropriate place for housing.
The proposals were submitted under new planning rules introduced by the Government which mean the council could only refuse the application on transport grounds, contamination risk or flooding risk.