The preschool closed in September 2000, and Abrams was convicted of murder and sentenced to life in prison in November of that year.
Since September 2000 there has been no preschool on the site.
The council's decision to uphold the commission's ruling came with two conditions proposed by Councilman Gary Monahan: The church can enroll only 30 students in the afternoon sessions, and there will be a review of its operations in six months.
The review will be conducted to find out the preschool's effect on the neighborhood.
In 2001, the city approved preschool morning sessions, but the church never made plans to open a preschool until this year.
The problem between neighbors and the church is not new, Monahan said. It has been an ongoing issue for eight years.
At the City Council meeting, Monahan expressed frustration over both groups not being able to come up with a compromise over the preschool.
Beth Refakes and Howard Denghausen, who live near the church, appealed the commission's decision.
"The planning commission did not consider the cumulative effect [the preschool will have] on surrounding residents," Denghausen said.
On Tuesday, Denghausen and Refakes cited not only possible traffic problems stemming from the preschool, but also current noise and parking problems from church visitors.
Denghausen gathered 29 signatures from neighbors for a petition opposing the afternoon sessions.
Leigh Harrison, the church's pastor, also presented a list of supporters who say the preschool is needed in the area.
Both groups accuse each other of not being a good neighbor.
"It just seems to be a case of NIMBYism that's not going to get solved," Monahan said. "And unfortunately all the old issues or complaints come up when a very much needed and outstanding preschool is attempting to fill a void."
In dissenting, Dixon thought the issue should have been continued until the Sept. 5 council meeting to give the church and neighbors a chance to meet and talk the issue out.