Redevelopment of the Ropetackle North site will provide 120 homes to help ease Adur’s housing shortage.
But long-mooted hopes of a hotel for the Old Shoreham Road site are on hold due to limited demand.
Adur District Council’s planning committee will meet on Monday to discuss developer Hyde’s plans for first stage of the scheme.
Phase one will include a mixture of two, three and four-bedroom homes, commercial floorspace, cafe and gallery.
Hyde has stated the initial redevelopment could act as the catalyst for delivery of a hotel and office space as part of the second phase.
Councillors are recommended to approve the scheme – but for the final green light to be delegated to officers, subject to resolution of several details.
A report to the committee read: “Overall, the development of the site will offer significant benefits to the town and accordingly approval is recommended.
“However, in your officer’s view there are still some issues to resolve before permission can finally be granted.”
The site’s redevelopment, given outline approval last year, has been flagged as a project of concern by the Shoreham Society over potential building heights.
Hyde has indicated the highest block could rise to seven storeys – appearing as six storeys when viewed from the riverside.
Officers have expressed most concern, however, with a five-storey block planned for the northern end. The report states the planners were ‘not convinced’ it was the ‘optimum solution’.
More details have also been requested by West Sussex County Council over parking provision and retail access.
Approval would see a financial contribution for a pedestrian crossing for Old Shoreham Road provided by Hyde.