A developer is appealing against the refusal of planning permission to build flats above the Glass Pavilion restaurant in Broughty Ferry.
Councillors voted 15 to 13 to reject the proposal by Perth Road Investments.
They decided that there was insufficient justification for construction of the flats, and their “excessive scale and massing” would harm the character of the C-listed, art deco former bathing shelter occupied by the restaurant.
Concerns were also expressed about overlooking and loss of privacy for nearby residents and a lack of adequate car parking on the prominent site, on the north side of the Esplanade.
The development management committee also took into account opposition from Broughty Ferry Community Council, which argued the proposals would result in insensitive overdevelopment.
However, the company has now asked the Scottish Government’s planning appeals unit to overturn the committee’s decision and allow it to go ahead with its project to create two storeys above the restaurant containing six flats.
Its planning agent Derek Scott claimed councillors had refused the application on “entirely unsound grounds” and said the site was an appropriate location for flats due to its proximity to central Broughty Ferry.
Also, a precedent had been created by the granting of planning permission for flats on land to the east.
Mr Scott said: “The development of the site for residential purposes will make a small but nonetheless important contribution to the supply of new housing in this part of the city.”
He added that the potential for overlooking from the balconies of the flats could be eliminated through the use of obscure glass.
Although the number of parking spaces proposed did not meet council standards, there would be “ample opportunities” to park on the Esplanade and in nearby public car parks, he said.
The city council has been advised of the appeal and will have a chance to respond.