The Portland City Council on Wednesday nixed construction of a 185-foot apartment tower on the shore of the Willamette River in the Pearl District.

In a unanimous vote, the five city commissioners signaled they would overturn the Portland Design Commission's earlier approval of the 17-story tower proposed by Lincoln Property Co. of Dallas, Texas. They will have to cast a second, final vote next month.

The Pearl District Neighborhood Association had appealed the design commission's earlier decision.

The group had argued the building would block views of the Willamette River and the Fremont Bridge, including from the nearby The Fields Park, and it would set a precedent for future development at that scale.

And, they said, it would encroach on the Willamette River Greenway, an effort to piece together a continuous trail along the river. Opponents said the building would cast the trail in shadow and that, at just under 13 feet wide, the trail would be too narrow for bicycle and pedestrian use.

Housing activists, meanwhile, argued the city would be contributing to the escalating cost of housing by denying the project and further limiting the supply of new homes.

Commissioner Amanda Fritz, who had argued against land-use policies that would allow taller development on sites near the river, said the proposal would create a pinch point on the greenway trail and failed to include design features that showcase to the Willamette River, one of the design guidelines for the district.

She — along with other commissioners — said views from The Fields Park didn't factor in to the decision.

"I don't consider the view from The Fields Park to be at all germane to this discussion," she said. "What is of concern to me is the development itself and the greenway, because the greenway is the significant public benefit that's involved in this site."

Mayor Ted Wheeler also said he found the argument about the greenway compelling.

"I don't think the building is a bad building," Wheeler said. "However, this location, as I say, is an iconic location, and what we do here will set the standard for the rest of the development that takes place along that corridor. The one thing we can never take back is the location of the building in the greenway."

The design took advantage of several density bonuses for including housing, bicycle facilities and a "green roof" covered with vegetation to absorb stormwater. The developer also sought several exemptions from design standards, including approval for a taller but thinner tower than is allowed by right under the rules.

The building would have included 275 market-rate apartments and space for a ground-floor restaurant, as well as a public plaza on its north side.

The developers' attorney asked the council to delay its decision so the firm could bring forward a new design. The council, however, opted to uphold the appeal, sending the developer to start the application process from scratch.

Patrick Gilligan, an executive vice president for Lincoln Property Co., said Wednesday's decision came as a shock both to his and to other developers in Portland.

"We honestly thought that we were playing by all the rules," Gilligan said. "It was a big shock, and it's very frustrating. And I think a lot of people are watching."

The company has not decided whether to pursue a redesigned version of the project, he said. "We've got some soul-searching to do."

The developer could build a wider structure up to 100 feet tall, which would also block the view from the park, without seeking any exceptions to the rules. The building's designers said they shifted to a tower to reduce the impact by blocking only a portion of the view of the bridge.

New land-use rules approved by the council, but not yet implemented, could allow a taller building by right once they're finalized.

A new application could also be subject to the city's inclusionary zoning policy, which requires private developers to set aside rent-restricted units for low-income residents in large apartment and condo projects.

-- Elliot Njus

enjus@oregonian.com

503-294-5034

@enjus