It was not rejected because of shadows, it actually was just delayed for some reason - this whole thread is pretty interesting (and very long)
thanks for the correction and additional information. that makes the situation appear less ridiculous, but in some ways worse (zoning says you can only build multi-unit housing here if units are one room, no kitchen -> commission meeting: all commissioners yell at them for not having kitchens in their tiny one room units).
it was someone encouraging/surprising that most of the comments seemed to be in support of the development.