Developers are proposing to turn a covered market into a mixture of shops and flats.
The outline planning application for Littlehampton's covered market, adjacent to High Street and Surrey Street, could transform the area.
Included in the proposals are 17 two-bedroom flats, five one-bedroom flats and space for shops.
The plans, which will be discussed by Arun district planners next week, have already attracted criticism from Littlehampton Town Council.
Councillors say it will be an overdevelopment of the site and there is no evidence of a need for shops below the flats.
They say it will mean a missed opportunity to use the space for one large store.
Officers are recommending the district council's development control committee approve the scheme but with six conditions and subject to an agreement requiring developers to allow public access.
In a report, for next Wednesday's meeting, they said: "The scheme includes buildings of innovative design and will provide significant visual and amenity enhancements to this part of Littlehampton town centre.
"The new pedestrian linkages through the site will assist the interconnection between the railway station, town centre and East Bank and sits well with economic regeneration initiatives for Littlehampton."
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