The demolition of a social club to make way for a shop and 10 flats has been refused by Gwynedd council.
The shop was due to be open 24 hours a day, seven days a week, and the plans included a canteen and parking spaces.
The community council and residents objected to the proposals for Maesgeirchen social club in Bangor, saying it would be "too big" and noisy.
Gwynedd council's planning committee refused the application on Monday on the grounds of overdevelopment.
Councillor Louise Hughes said: "When all of the local people want us to refuse it, we as planning committee have a duty to listen to them."
The decision was previously deferred so councillors could visit the site.