Scarborough Borough Council's planning committee has rejected plans to covert the former Argos building into student accommodation.
In a heated planning meeting councillors raised concerns over parking arrangements and health care provision, but the reason for the rejection came down to the buildings size and outward design.
The plans were to convert the building into student accommodation for the NHS and CU Scarborough. It was hoped the building would accommodate up to 200 students, but there would be no provision for car parking and no right for occupants to obtain on street parking permits.
Councillors on the planning committee said the building was too imposing for the site, it was planned to be five stories while most of the other buildings in the area are three or four stories tall.
A motion to approve the plans failed to gain a majority in a vote. A separate motion to reject the plans was then passed 8 votes to 7.
The motion to reject the plans was put forwards by Councillor Phil Trumper who likened the building design to something from the Eastern Bloc.
Earlier the meeting was briefly adjourned after interventions from the public gallery.
Planning officers has recommended approval of the plans.
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