When Knightdale passed its comprehensive new development ordinance last fall, it was touted as a way to create pedestrian-friendly urban centers that mix commerce and housing.

On Monday night, the ordinance got its first test in the real world as the town’s Land Use Review Board debated whether to allow a developer to build a Wal-Mart Supercenter next to two residential neighborhoods.

Cary developer Wakefield Associates has proposed building a shopping center on a 51-acre piece of property that fronts the south side of Knightdale Boulevard, also known as U.S. 64 Business. Wakefield wants to rezone 19 acres at the back of the property, where it would place a 206,000 square foot Supercenter and a retention pond.

More than 50 residents, many holding anti-Wal-Mart signs, attended Monday’s meeting to oppose to project.

After nearly three hours of testimony and deliberation, the board voted 4-2 to recommend that the Town Council deny the rezoning request. The Town Council is expected to make a final decision on the request at its June 21 meeting.

The vote was a setback for Wakefield Associates, which has been working with Knightdale’s planning staff since October to craft a plan for the property that would satisfy officials and nearby residents. The project originally came before the Land Use Review Board in April, and has since been revised to try and address concerns raised by town planners and residents.

Knightdale’s planning department recommended that the Land Use Review board approve the latest version of the project, albeit with a number of conditions. But those conditions failed to satisfy many board members, who maintained that the project was simply too large and intrusive to be located next to residential neighborhoods.