The City of Newton’s decision to block a mixed-use housing project in the N2 Innovation District has been upheld by the state’s Supreme Judicial Court.

Cabot, Cabot & Forbes had proposed a four-story, mixed-use, 334-unit rental apartment complex at 135 Wells Ave. But the board of aldermen declined to lift a deed restriction at Wells Park in 2014 that would have allowed the 40B affordable housing project to proceed.

The developer had hoped the state’s 40B affordable housing laws would supersede the deed restriction. The court ruled otherwise this week, according to Lawyers Weekly (subscription required).

The Newton-Needham Regional Chamber had supported the project “because it aligned with our vision for the N2 Innovation District by providing much needed workforce housing close to employers and came with a commitment to provide shuttle service for the park as well as road and sidewalk upgrades,” said Chamber President Greg Reibman. “We’re disappointed by the ruling but especially with the city’s original refusal to negotiate with the developer on a project.”