The Sisters of Mercy had hoped to build 126 homes on a 12-acre at Taylor’s Hill but the plan was refused by An Bord Pleanála following objections by residents.
The proposed site, surrounded by some of the most expensive houses in Galway, is a short distance from Salthill and from the city centre.
Galway City Council last year passed a motion calling for the land to rezoned and developed into an amenity park, including a children’s memorial park.
Catherine Connolly, a councillor, proposed the move, stating that the land should be handed over to the city as retribution for years of abuse of children by religious orders.
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