118 student flats will be built in Lincoln city centre after plans for a 63-bed, six-storey hotel were dropped.
The application by Jackson and Jackson Developments will include a commercial unit on the ground floor of the new building on the junction of Clasketgate and Flaxengate.
It will also see the former Pygott and Crone Estate Agency branch to the rear demolished.
Councillors on City of Lincoln Council’s planning committee approved the plans and praised the design of the building.
Councillor Biff Bean said the location was ideal for student flats.
He said: “I prefer this design to the hotel.
“I also like the fact that it’s in this location as it does not affect on the residential areas.”
But, Councillor Ronald Hills said he felt “cynical” about the application following the approval of a hotel at the same site only five months ago.
“At the time, a lot was made of how we need more hotel accommodation,” he said.
“Now, suddenly it cannot be built and in some ways we have our hands tied because we have given permission for a building of similar size.
“I want to turn this down on principle but I can’t.”
Plans were approved back in May for a six-storey hotel on the site, but have since changed after the developer bought the site.
The accommodation will now become an extension of a previously approved student block at the site which was also submitted by Jackson and Jackson.
Dominik Jackson, Jackson and Jackson Developments, said that there is an “urgent need” for student accommodation in the city.
“We were approached by the university about whether we could extend our Grantham Street site,” he said.
“At first we were apprehensive, however after further discussions we found that the hotel would struggle to get commercial backing.
“This site is all about design and we have worked hard with planning officers for a fresh design.”
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