The City Council has rejected the Bloomberg administration's proposal to convert a former national guard armory in the Bronx into a shopping mall.
It was the first time, city council members said, that an economic development initiative spearheaded by Mayor Bloomberg has failed in a full council vote.
Negotiations had centered on the issue of a living wage: whether retailers at the mall would be forced to pay $11.50 an hour or more. City council members supported the idea; Mayor Bloomberg opposed it.
Last week, Mayor Bloomberg said dictating wages would be meddling in the marketplace.
Members said negotiations broke down in the past few days. The vote was 45-to-1, with one abstention.
The 1 "yes" came from outgoing council member Helen Sears.