A private developer would like to erect a series of townhouses just outside the boundary of Signal Hill National Historic Site. (CBC)

St. John's can't stop a developer who wants to build townhouses on private property on the edge of the Signal Hill national historic site, according to a councillor speaking at Monday 's city council meeting.

Coun. Frank Galgay said the land is privately owned and the city can't block a development if it follows the zoning bylaws for the area.

"In the zoning there, we acknowledged the fact that that [land] is privately owned by an individual and to completely rezone that as open space would take away that person's private property," said Galgay. " I think, for one, some form of development should take place there."

Alfred Pike owns the land. This spring, he proposed building nine two-storey, town houses on a piece of land directly across from the Johnson GeoCentre, a privately operated geological museum.

Homes were located on the site in the past and Pike wanted to see family dwellings built there again.

At a public meeting in late May to discuss the proposal, many people spoke out against it.

"Of all the tourists that come into St. John's, over 98 per cent of them go up to Signal Hill, and I would say this is absolutely, totally, inappropriate," said one St. John's resident at the meeting.

Since then the developer, Leger Holdings, has reduced the number of houses that it is proposing for the site from nine to eight. The developer also is looking for ways to reduce the overall height of the project.

Council didn't vote on the new proposal Monday. The vote was deferred to give city staff a chance to look at the revised proposal.

Proposed developments in downtown St. John's often are controversial, with residents opposing several proposals for hotels and office towers.

This spring, St. John's-based Fortis Inc. withdrew a controversial proposal to erect a glass office tower on Water Street.

In May, the company that owns the Battery Hotel, which is located near the site of the proposed townhouses, put the property on the market.