Many neighbors in east Anchorage are relieved after the mayor nixed a project that a lot of people expressed concern about.

The Municipality of Anchorage had plans to build a new bus barn near the Totem Movie Theater parking lot on Muldoon Road to allow for 120 of the school district's buses.

The Anchorage School District was slated to pass a resolution in support of it, but a few hours before the meeting started Monday, Mayor Ethan Berkowitz killed the plan, saying they will work with the district to find another location.

Last week, the North East Community Council was filled with angry neighbors, saying they didn't want the noise, or the diesel fumes where they live.

"A lot of emails were sent there was a strong reaction from the community council but myself and I think Pete Peterson, as well we expressed to the mayor probably a different site would be appropriate because this site is just a little too close to residential areas 26," said Anchorage Assembly member Forrest Dunbar.

The Muni will need to find a new site for the bus barn. They've made a deal with a developer that gives them some of the land the bus barn currently sits on, in exchange for building a $170 million development project on Elmore and Tudor Roads.

Liz Raines contributed to this story.