Mayor Dave Pyatt and councilmen Chris Everich, Peter Helt and Gary Nelson voted against the annexation, while Councilwoman Wendi Peters was the lone vote for it.
"I think it's the right thing to do, and takes us to the next step," Peters said before the vote.
Retired veterinarian Emmett Full owns the land, called the Rigler property, north of town. He wanted to build a recreation center that may have included fields for soccer and lacrosse, as well as areas for volleyball, basketball, batting cages, trampolines, a mini-golf course and a community meeting room.
The land is mostly in Carroll County, and has zoning for one house per acre or a recreation center with special permission. But Full needed Mount Airy to annex the land so he could access the town's water and sewer system.
In the spring, the town's planning commission recommended that the council not annex the property, citing water issues and the impact it would have on neighborhoods. The property is next to Summit Ridge, causing many residents in the neighborhood to oppose the proposal, saying a recreation center would cause blocked views, traffic, noise and light pollution.
But the town overall was split evenly about the plan. Some were concerned it would create worse water shortages while others saw the benefits of a recreation center.
Many sat in the audience Monday night with signs in support of Full while council members debated what to base their vote on. Some said the recreation center was a good idea, but the location might not be best.
"How much do we consider a proposed use when we consider an annexation?" said Helt, who had said he walked into the room undecided after hearing strong arguments from both sides of the issue. "If it was just houses, we wouldn't be talking about this."
Full and his company, Buffalo Road Investment LLC, have six months to bring the petition back if desired. He did not immediately return a phone call to ask what his next step might be.
E-mail Angie Cochrun at acochrun@gazette.net.