An affordable tiny home project in Okotoks, Alta., is all but dead.

The "ecovillage" project has been hotly debated in the town since it was first proposed in 2017, and shifted locations after nearby residents complained.

On Monday, the town council voted on first reading not to fund the project after accepting a petition opposed to it that had almost 3,000 signatures.

Council will make a final decision in September.

To continue pursuing the project would have meant a plebiscite, said Mayor Bill Robertson, and that's something council wanted to avoid.

He said there was a lot of misinformation among residents.

"They thought their taxes were going to go up," said Robertson.

"Some people objected to any town funding at all or any in-kind, or what we call in-lieu of funding — like, say, use of town land and so on — that would go toward this project. They were in opposition to that. They thought that ... if there was a demand for this, the private market should pay for it all."

Homestead Project

The project, which would have been developed on 1.1 hectares (2.8 acres), was spearheaded by Realize Communities, a non-profit that was prepared to invest $4.4 million into the almost $8-million development.

Robertson, who supported the project, said no lease agreement had yet been reached with Realize.

He said he's disappointed but notes the project generated significant discussion in the town.

"So this has really brought to the forefront … community awareness of affordable housing and, you know, how to attain that," he said.

The tiny homes were to be part of a larger endeavour called the Homestead Project that would eventually encompass four hectares (10 acres). The first phase would also include community gardens and green space.

The town said in a news release that it will re-evaluate what to do with the land.