A vote by the San Angelo city council Tuesday denied the conditional use for Bark Boutique and Grooming Salon of a building on Sunset Drive which was formerly called Magic Spot.
The owner of the business Liz Kidd says the business has grown and now needs additional space.
"We have so many customers wanting boarding [services] and they us because they trust us, they need us," she said.
She's set her sights on the Sunset Drive building but it's come with some objections from residents living in the area.
Some fearing it will decrease their property value due to pet odor and the increase of noise.
"I don't think that's fair because dogs, I don't think they're going to be any louder than the traffic going through there," Kidd said, referring to the busy street adjacent to Red Lobster, Sunset Mall and Target.
Kidd says she's not giving up hope in expanding her business.
"Hopefully I will find another place to move into or I will appeal the city's [decision]," she said.