PEABODY – Rezoning issues arose again for city councilors last week when the owners of 32-36 Walnut St. asked to amend the area on the zoning map.Their request to change the zone from a Light Industrial (I-L) District to a Central Business (BC) District had been pending for more than two years while the city worked on developing a new zoning map. It was officially shot down Thursday night after the council voted 6-5 against the request in fear of setting a precedent for others in the area. It needed eight votes to pass.The Planning Board approved the request by owners Anthony Salalayko and Darrell Norwood stating, “The entire area of Walnut Street is now more of a business neighborhood than an industrial neighborhood.”The owner, Athan Vontzalides, said the building was renovated with the BC uses in mind, not IL. Rezoning would allow the owners to turn the once dilapidated oil machine building into a new home for restaurants, shops, and convenience stores. But, as councilors pointed out, the zoning change would also allow for residential use.”I realize the underlying fear,” he told councilors. “That the land will become residential?There’s only 900 square feet of property. It’s virtually impossible.”In a memo to the council, the Department of Community Development and Planning wrote, “The Walnut Street Business Corridor is clearly a commercial zone that is part of Peabody’s Downtown Core, which houses many businesses and services to patrons and surrounding residents.”It further states, “It should be noted that the applicant is taking the initiative to move forward with a request for a zoning change that the Council has failed to implement in the past year.”However, some councilors were weary that doing so would create a series of future headaches and loopholes.”Neighbors don’t want any more residents,” said Councilor Rico Mello, who feared the development of residential high-rises.Others felt that the zoning change would be beneficial to the “dying downtown.””It’s pretty black and white,” said Councilor Mike Garabedian. “We shouldn’t be trying to suppress businesses around here.”Councilor Ted Bettencourt Jr. said the city needs and wants more people to do what Salalayko and Norwood are doing.”The (current) zoning puts handcuffs on the city and petitioners,” he said. “We want to help them.”Despite Bettencourt’s efforts to keep the issue in committee before issuing a decision that prevents another business from growing in Peabody, the decision was final.