Flooding worries have scuppered planning permission for upmarket houses near Baldovie Toll.
In 2008 WH Brown Construction was given consent to build six detached houses and an access road on a 1.25-hectare site between Kellas Road and the flood-prone Fithie Burn.
No work had taken place by the time the company collapsed last summer, putting 130 people out of work and leaving debts of £6 million.
The five-year planning permission for the site ran out in January and the company’s receivers asked the city council for an extension. They are hoping to sell the site to offset some of Brown’s debts.
They argued allowing additional time to build the houses would “give some certainty as to the planning status of this site for potential purchasers” and said there had been no material change to the development plan since consent had been granted.
However, several nearby residents objected, pointing out the long history of flooding in the area. They also claim a lack of maintenance at Drumsturdy Pond and water channels of a former mill had contributed to the problem.
Dundee City Council has now released its reasons for rejecting the proposal, including a failure to restore and maintain the pond system.
Its report said: “There have been a number of serious flood events affecting the site and the surrounding properties since 2008.
“No attempt has been made by the former owners to maintain the site or seek to discharge any of the conditions or resolve any of the concerns since permission was granted.
“Indeed, they subsequently sold off the pond to another owner, which effectively would ensure that the works detailed in the planning conditions would be much more difficult to achieve.
“This site is unlikely to be brought forward for development in accordance with the planning permission as a result of changed circumstances.
“The council considers a precautionary approach to development of the site is justified by the flooding events which have occurred in the vicinity since permission was granted and which require further investigation.”