Developers won't build a $300-million racino — a facility that hosts both a harness racing track and VLT terminals — and hotel on the Saint John waterfront, a spokesman says.

Greenspace Development Holding had asked the city for a one-year option on land the city owns. The group wanted time to solidify its business plan and buy other pieces of land around the city-owned Lantic Sugar site.

However, city council decided that it wasn't willing to hold the land for one year while Greenspace explored the possibility of acquiring the other pieces of land.

Dave Ryan, a spokesman for Greenspace, said Tuesday that the company would look into whether another city was interested in the development.

"If our investors are willing to go forward with the project, then we have to look elsewhere," he said.

To go ahead with the project, the company would have also had to acquire land currently owned by the Saint John Port Authority and the federal Defence Department.

"To hold up a prime piece of land for a year without knowing whether the others are going to be there is not really fair to other developers that might want that piece of land," said Mayor Norm McFarlane.

A racino was to be the centrepiece of the project. It would also have included housing, a hotel, a spa and a baseball field.