The Everett Herald reports the council decided against allowing so-called "apodments" within the Snohomish County's city limits. Coho Real Estate of Seattle wanted to build the housing in a vacant building near Snohomish High School.
City Councilwoman Lynn Schilaty says that kind of density is not appropriate for the area, citing lack of transportation.
The city's planning board earlier this month voted 4-2 against each of two proposed ordinances that would have allowed the housing.
Planning commissioner Christine Wakefield Nichols said afterward that the apodments aren't allowed under the city's long-term plans and are opposed by residents.
About 130 people attended the planning commission meeting with most speaking against the housing style.