Controversial plans to replace Victorian gardens in the centre of Aberdeen with a city square have been rejected.
The City Garden Project would have seen the sunken Union Terrace Gardens raised and paved over.
After years of wrangling over the area's fate, and a referendum earlier this year where voters backed the project, councillors debated the idea and rejected it by a narrow margin.
The vital vote focused on the proposed £140m plan - backed by £50m from businessman Sir Ian Wood - to transform the gardens.
New proposals were put forward the day before the council vote.
The Independent Alliance Group set out the idea of investing in the Union Terrace Gardens and landmark buildings around Aberdeen.
These proposals were backed by 22 votes, with 20 against and one abstention.
According to the BBC, there were heated exchanges afterwards between some business leaders who supported the City Garden Project and councillors who voted against it.
Sir Ian has withdrawn his £50m offer and said he was dismayed.
Callum McCaig, leader of SNP group, had called for the City Garden Project to be backed.
He said he was "bitterly disappointed" at the decision.
Conservative Alan Donnelly said the amendment was an "almighty fudge".
However, Mike Shepherd, chairman of Friends of Union Terrace Gardens, said: "There is no doubt that our councillors made the correct decision.
"This is the end of the City Garden Project debacle.
"Union Terrace Gardens is at the heart of our city. Let's nurture them with the care and attention they deserve. We can restore them to a place of pride and glory. Let's go ahead and do it."
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