Developers have called it a 'sad day' for St Helier and Jersey as a whole as plans for flats and a hotel on Broad Street are rejected.
Local developers Le Masurier were behind the plans, known as Les Sablons, Managing Director Brian McCarthy says disappointment is an 'understatement'.
"Le Masurier’s £120 million investment would have contributed to the island's chronic housing shortfall on a town centre brownfield site, thereby protecting our precious countryside.
"It would have delivered 150 full-time jobs, boosted tourism with a brand-new aparthotel through Staycity, with whom we had agreed terms subject to planning consent, and created a publicly accessible courtyard garden linking King Street to the bus station via a safe pedestrian route.
"All of this would have been at no cost to the taxpayer."
Aerial CGI model of proposed Les Sablons development
In her report, Assistant Minister for the Environment Deputy Hillary Jeune outlined why she had rejected the plans again.
"The height of the proposed development along the Commercial Street frontage would significantly exceed the four, or exceptionally four and a half, storey height range guidance for the town centre character area.
"The significant scale and height of the proposed development along the length of the Commercial Street frontage would be overbearing and oppressive and of detriment to the amenity and character of the street."
Mr McCarthy says he believes the planning system is 'fundamentally broken' and that the review was 'too little, too late'.
"It is imperative that our planning system considers our island’s declared needs, and gives fair consideration to proposals that are put forward, which will go a long way to resolving the challenges the island faces on housing, tourism, and inward investment in St Helier.
"In addition, the construction industry is under immense pressure at a very difficult time and decisions like this do nothing to support our economy."

"Tropical nights" forecast for the Channel Islands
Les Amis nursing home on track to open this autumn
Candle-lit evening at St Brelade's Bay Beach to remember loved ones
How to have 'safe and enjoyable' Jersey beaches for summer
Appeal after woman grabbed by throat in nightclub
Essential work to begin on Springfield Stadium
Man who dug up cocaine in woods is jailed
Jersey and Guernsey included in UK-Gulf trade deal