The commission rejected the proposal to establish the Alexandria House shelter at the site of the former Elbow Room bar.
Residents were concerned about drawing problem-causing strangers to the neighborhood.
For three decades, the Elbow Room was known for its hard-partying clientele. In the 1970s, Playboy magazine named it "The most notorious bar on the North American continent."
Though he wants to open the shelter, John Honan, pastor at Unalaska Christian Fellowship, said he understands how residents might be worried about losing their long-sought tranquility.
Important warning about e-mails purporting to be from the adn.com staff.