Plans to redevelop part of the Prices Candles Factory on York Road would not provide enough affordable housing, councillors have ruled.
The planning application committee also said the proposed building would be too bulky along the York Road frontage.
The proposal was to demolish most of the site's existing buildings to create 116 new homes, of which 17 would have been available through shared ownership.
New retail, office and industrial space were also part of the scheme.
Planning Chairman Cllr Nick Cuff said: "The number of homes set aside for shared ownership was too low. A wider package of community benefits was included in the application but it did not adequately compensate.
"This is a largely derelict site with clear potential for housing development but any new proposal that comes before this committee must offer a higher proportion of affordable homes and be of exceptional design quality."
(CD/GK)
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