Liverpool mayor Joe Anderson has blocked plans for a £5 million aerial zip wire in the city.
Councillors had previously backed Zip World’s proposals for a 400m (1,300ft) line running from St John’s Beacon to Liverpool Central Library.
But Mr Anderson said he had “serious concerns” about using a council-owned building for the project.
Zip World co-founder Sean Taylor said it was a “setback”, but the firm still had “a big future” in Liverpool.
Mr Taylor had claimed the attraction would boost tourism and create jobs.
But objectors argued that the zip wire, which would pass over St John’s Gardens behind St George’s Hall, could lead to the “Disneyfication” of the city centre.
Mr Anderson said the city’s planning committee had acted “fairly and democratically” in granting the application despite the objections.
“As mayor, I do not interfere in the planning process,” he told the BBC.
“However, I do have the final decision on whether a building owned by the council should be used in such a way.
“I have serious concerns about using this area and, having spoken to the company, could not let them progress further, knowing I would not support it.”