Telford Developments Ltd has applied to knock down the former Eden Complex, on Canongate, Oakengates, and build the 70-home block.
A report for the Telford and Wrekin Council Planning Committee says the business currently has “significant annual losses” and is no longer viable, and the site is “in need of redevelopment”.
Planning officers recommend the committee approves the proposal next week.
Blueprints submitted to the council on behalf of Telford Developments director Rajinder Pandher show a parking garage and cycle storage room on the ground floor with 53 one-bedroom and 17 two-bedroom apartments and a gymnasium on the six floors above.
The planning officers’ report says the one-and-a-half-acre site lies on the north side of Canongate, between the Royal Mail sorting office and the A442 Queensway.
“The site comprises an existing two-storey high building which has last been used as a nightclub and function room with adjoining sports bar and snooker centre,” it adds.
“A large car park serves the site providing approximately 100 spaces.”
Oakengates Town Council has objected to the redevelopment, the write, as it is concerned “the plans show overdevelopment of the site” and the building is “too high for the elevated site” and “not in keeping with the existing street scene”.
Nine objections have been received from members of the public, repeating those concerns and adding others including “close proximity to the A442 Queensway” and the “capacity of the local highway network” to cope with 70 new households.
The officers write: “The applicant has advised that the business can no longer be operated successfully due to significant annual losses, with the issue only being exacerbated by the effects of the recent pandemic.
“Officers are mindful that the site is in need of redevelopment and there are other similar facilities both within Oakengates and around the borough and, therefore, the loss of this community facility is considered acceptable in this instance.”
They add that, in their view, the “proposal will respect and respond positively to the site and the wider area, whilst taking account of the site constraints” and new homes “will not cause any detrimental impact” on neighbouring properties.
The Telford and Wrekin Planning Committee will discuss the proposal when it meets remotely on Wednesday, December 16.