At the meeting today Westridge resident Doug Henry said he was pleased with the decision.
"I am very happy that councillors listened to what ratepayers thought. We didn't want to block development in Tauranga we just didn't want it to destroy our lifestyle."
Smiths Farm encompassed 15ha of land that was suitable for development.
The remainder of the land, including Kopurererua Valley reserve land on the eastern side of Takitimu Dr and the green bank along Takitimu Dr would be retained in council ownership.
Smiths Farm was one of the council-owned properties included in council's wider Land Sales Programme. Land sold was surplus to requirements and proceeds from sales contribute to reducing council debt.
Next year council would consider to sell the land to a developer, partner with a developer or undertake the development itself.