A plan to build a two-story apartment building near the 50-foot boulder from which Eagle Rock gets its name was rejected Thursday by the Los Angeles Planning Commission.
The commission voted 3-0 against granting a zone change to Fred Heim, who owns the 2.6-acre lot on which the rock stands.
Community activists have fought development of the land, saying it would obscure views of the imposing rock that gives the small community its identity.
Beverly Hills developer Kenneth Bank, who is in escrow to buy the property from Heim, said Thursday that he now would like to build six or seven single-family homes on the site. But Heim, saying he wants to cooperate with city officials, has been negotiating with Los Angeles City Councilman Richard Alatorre to sell the land to the city.