Raleigh, N.C. — A controversial development proposal near Crabtree Valley Mall was rejected Wednesday by a 2-1 vote of the Raleigh City Council's planning committee.

Two Atlanta-based companies want to transform the old Kidds Hill Plaza into Crabtree Village, an area of retail, office and residential space.

"This plan, I have to tell you, is the best I have seen and the best I can imagine," said Rick Marshall, who owns the 25-acre piece of real estate.

The proposed development has been under scrutiny due to environmental concerns. Developers have changed the plan nine times with changes, including reduced parking and fewer living units, more trees and more erosion control.

Developers met with the Sierra Club and other groups with environmental concerns, but some critics do not like the flattening of the hilltop. Others argue trees and the environment should not be compromised.

"We definitely give them much credit for the effort they're trying to do," said Tim Reed, of the Capital Group Sierra Club.

"The grading and terracing issue is certainly the one point there's not agreement, and I respect that point of view," said project architect David Brown.

Thomas Crowder and Russ Stephenson voted against the plan while Tommy Craven supported the plan.

The City Council can still vote Tuesday to move forward with the project, but if it decides against doing so, the developers said this particular plan would be finished.