By unanimous vote, the Planning Commission issued a negative recommendation for a zoning change Wednesday that may kill Wal-Mart's chances of erecting a new 120,000-square-foot supercenter at the mouth of Parleys Canyon.

The final decision now falls on the City Council, which could vote later this fall.

A crowd of nearly 100 erupted after the vote, some holding their fists in the air.

"We're psyched," said Jill Burke, with Foothill Development Watch. "That shows you the role community councils play."

Karianne Fallow, a Wal-Mart spokeswomen, said she was surprised more of the mega-retailers supporters failed to show.

"We've got our remodel plans," she said. "If we're denied at the City Council, we'll go forward with our remodel."

Wal-Mart hoped to bulldoze the Kmart at 2705 E. Parleys Way and replace it with a new supercenter complete with energy-efficient design, a trove of trees and a full grocery. The retailer may now have to adjust its plan to fit into the 40-year-old Kmart building.

"This is great grassroots democracy," said Commissioner Tim Chambless. "I'm just very, very pleased to see it."

Commissioners said they weren't convinced a rezone was necessary, even if that meant more control over the ultimate design plan. Wal-Mart's reluctance to allow tweaks, especially in "green" building standards, forced the move, members said.

"From an environmental standpoint, I think we need to send a message to the City Council and the mayor," said Commissioner Peggy McDonough.

Nearly 100 people turned out to comment. Many argued the rezone is unnecessary, noting Wal-Mart could do a "green" remodel of the Kmart big box without it. That way, if Wal-Mart sells the property one day, the neighborhood could perhaps get a more walkable development, residents said.

"The control is now," Philip Carlson told the commission. "If we change the zoning, I've lost the control for another 40 to 50 years."

Since Wal-Mart owns the property, the supercenter is destined to come - either as a remodel or as new construction if the city consents.

But during the 2- hour public hearing, some argued the increased traffic drawn by a new supercenter will be inconsistent with the neighborhood.

But Frank Gray, the city's new economic development director, insists increased congestion will be "negligible." Gray also notes the zone change will allow the community more control over the store design, including landscape elements and access to nearby trails.

East bench neighbors aren't so sure.

"I have little faith that my input will be dramatically considered," said Marti Johnson who lives nearby. "There might be lip service given."

And John Ward, said he hates a quid pro quo.

"I'm a little troubled by some of the nods and winks," he said. "We're a little disheartened. Sometimes a drive through Sugar House can show what a stalemate brings."

At least one in attendance defended Wal-Mart, saying not approving the rezone is anti-business and "very elitist."

"Would you rather look at a rundown piece of crap car in your neighbor's driveway or a new car that actually runs?" asked Dan Sorensen, a nearby resident.

Wal-Mart bought the property in 2005, but later that year the city prohibited supercenters from community business areas, prompting the need for the zone change.

Fallow argued the zoning change is needed to ensure an energy efficient store and a "comfortable shopping experience."

"We tried to make it an open process," she said. After the vote, Fallow said Wal-Mart will work "aggressively" to get their supporters to the upcoming City Council hearing. "We know they're out there."

Project manager Troy Herold insisted a rezone would allow the current "sea of asphalt" to be remade with tree-lined islands and additional landscaping as a buffer.

But the commission was not convinced.

"Let's look at that third west [Wal-Mart] store," said Commissioner Mary Woodhead. "That place is an eyesore."