A council committee is divided over a plan to demolish a former hospital and build a five-storey block of flats.
Brighton and Hove City Council's planning committee narrowly voted to defer a decision on the fate of the old Nuffield Hospital in New Church Road, Hove.
It will wait until the developer makes the plans more sustainable and appropriate to the surroundings.
But many members wanted to approve the scheme, arguing the derelict site was of no use to anyone.
They said the developer's promise to pay for renovations of community facilities at the adjacent St Peter's Church should be taken advantage of as soon as possible.
Belmont Homes, which bought the private hospital site from the Nuffield Nursing Homes Trust last August, hopes to transform it into a residential development that would include 28 low-cost flats.
Each of the 70 flats would have its own parking space with an extra seven for visitors.
A boiler system which would serve all the flats would cut down on carbon dioxide emissions, solar energy would be used and rainwater would be collected to irrigate the garden.
But at the committee meeting on Wednesday, planning officers said the company had failed to adequately demonstrate how it would efficiently use materials and how sustainable transport would be maximised.
They also said the building would overshadow its neighbours and was out of character with the area.
It was an unsatisfactory application and was recommended for refusal.
Councillor Delia Forrester said: "I am concerned about the density and intensity of the development.
"Also, we haven't yet found out how well the company complies with the eco-homes standard."
But Brian Oxley said: "The architects and the developers have done a huge amount of work in trying to produce a development that is in keeping with the New Church Road area.
"The generally positive response of residents has reflected this time and attention."
Councillor Francis Tonks said: "A derelict private hospital building is not much use to the community.
"It seems to me very proper to put money into community facilities at the church hall."
The committee was split down the middle, with six voting to defer and six voting to proceed with the decision.
Chairman Les Hamilton cast the deciding vote.
The final decision was delayed until a planning committee meeting in December.
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