Phoenix leaders rejected a plan to build a condo tower and hotel in the high-end Kierland area and some worry it will cause Phoenix to lose millions in tax dollars.

The proposal for the corner of Scottsdale Road and East Kierland Boulevard required a zoning change. DMB Development pitched a 120-foot-high condo tower, a luxury hotel and other commercial uses.

Michael Burke with DMB told council members that surrounding retailers support the project and they should, too.

“The city should be putting this project up on a pedestal and celebrating the success of Kierland, not cutting back and trying to stop people from building there,” he said.

Councilwomen Deb Stark and Laura Pastor voted in favor of the project, saying they didn’t want the city to lose revenue to Scottsdale — where just across the street that city is considering a high-rise zoning case.

“The fear I have is if we don’t move forward on this then they’re just going to go across the street to Scottsdale, on the east side where they’re proposing a 134 feet,” Stark sad.

Councilwoman Vania Guevara joined Stark and Pastor in support, but the majority of the council sided with neighbors who complained it was too big and would cause traffic issues.

“It will impact the character of the neighborhood, the livability of the neighborhood and the enjoyment of that neighborhood by the residents who thought the plan that was in place was the plan that would remain,” said Wayne Mailloux.

Vice Mayor Jim Waring, who represents the area, said the council might reconsider the project within 10 days if both sides could reach a deal. The developer could also come back with the same plan in a year when there is a new mayor and possibly two new councilmembers.