FAIRHOPE, Ala. — One of two developers seeking to locate a controversial “big box” Publix grocery store near the scenic entrance to Fairhope suffered a setback Monday night at a crowded city Planning and Zoning Commission meeting.

The commission voted 5-3 to recommend denial of an application by Hutchinson, Moore and Rauch LLC to amend the existing Village North Planned Unit Development (PUD) to increase the size of a permitted grocery store from 18,000 square feet to 46,031 square feet. Unless the developer withdraws that application, the final decision on the proposal will be made by the City Council after a public hearing at a meeting early next year.

“The project team is currently evaluating options in light of the planning commission’s recommendation last night,” said Christopher Baker, director of planning for HRM, the engineering firm for the Atlanta-based developer Wallace Real Estate. “We have not made a final decision to withdraw (the application).”

Baker said the property is currently owned by the Dyas family, and that Wallace Real Estate was purchasing the acreage known as the “Triangle” where Section Street meets U.S. 98. That property has been the site of ongoing but unsuccessful attempts to develop the property since the current PUD was created by ordinance in 2002, Baker said.

Last week, Baker said that the failure to obtain the requested amendment could lead to the developer’s decision not to pursue the project.

Prior to 2002, the property was the site of litigation and a series of public meetings and hearings resulting in the creation of the existing PUD, city planning officials said.

The proposal to amend the PUD requested other changes in the development to maintain the original maximum of 180,000 square feet of commercial space.

The Village North mixed-use commercial and residential development would be located on both sides of Section Street where it meets U.S. 98.

The meeting was attended by approximately 375 people, according to city staff. When the commission chairman asked for a show of hands of those opposing the proposal, most of the hands in the large auditorium went up. Less than a dozen hands were raised in support. Twelve people spoke against the project, and one person spoke in favor.

The Planning and Zoning Commission members who voted to recommend denial of the amendment were: Chairwoman Jean Wilson, Mayor Tim Kant, City Councilman Bob Gentle, Sewer and Water Superintendent Dan McCrory and Bob Clark. Clark made the motion to recommend denial, and Gentle seconded it.

Members voting to recommend approval of the amendment were: Vice Chairman Dick Charles, Ed Brinson and Lee Turner. Gary Moore recused himself.

Monday night’s action may have enhanced the position of the developer of the Fly Creek PUD located across the highway from Village North at the southeast corner of U.S. 98 and Parker Road.

That PUD already allows construction of a 52,000-square-foot grocery store.

Arthur Corte, the property’s owner, said Monday night that he had met with Publix this summer, and that they were interested in his development.

Corte spoke during the project’s application for site approval of the commercial retail shopping center phase of the proposed mixed-used development.

The commission recommended approval of the the site development plan with some modifications.