Plans to build houses on a Lancaster car park have been approved despite claims that "it isn't the right site or the right time".
The plans for 39 new affordable homes on the Nelson Street car park close to Lancaster Town Hall, were given planning permission on Monday.
Councillors voted unanimously in favour of the plans during a meeting of the Lancaster City Council planning regulatory committee at Morecambe Town Hall.
But Tom Fyson, from Lancaster BID (Business Improvement District) who spoke out against the proposals, said: "We do appreciate the need for housing in the district but this simply isn't the right site or the right time."
He said there were "serious concerns about where residents, visitors and deliveries will park" and that the new development "doesn't have adequate parking facilities on it".
"Parking is essential for the functioning of a city centre," he said.
"You need to be able to drive and park and without that, businesses simply won't survive."
Mr Fyson also questioned the council's claims that the multi-storey Castle Car Park, which has been closed for maintenance, will reopen and provide additional parking spaces for the city, saying there were "no definite timescales" and "even if that car park came back into use, it's on the other side of town".
He also said the council had paid for Automatic Number Plate Recognition (ANPR) cameras in pay and display car parks this year but was "looking to progress this site before you have a scrap of data".
Mr Fyson was speaking on behalf of the BID, an independent company which champions businesses in Lancaster city centre.
Many local companies have spoken out in recent years against plans to build on car parks, because of the potential loss of parking spaces.
The Nelson Street plans are for "39 residential units comprising of four dwellinghouses, two four-storey apartment blocks and one two-storey apartment block with associated parking, landscaping, public realm, associated infrastructure and alterations to canal wall".
There will be four development blocks consisting of one block with four three-bed dwellings; a block with 12 one-bed apartments and four two-bed duplex apartments; a block with three two-bed duplex apartments and a block with 12 one-bed apartments and four two-bed apartments.
Below, images of how the housing might look.
Thirty two of the properties would be affordable rented and seven would be shared ownership.
The council received 177 letters of objection to the scheme, on various issues including loss of city centre parking spaces.
There were two letters of support, citing the benefits of city centre housing.
Council officers had recommended the scheme be approved, a report saying "the council’s current housing land supply stands at 2.8 years which represents a significant shortfall" and "there is an acute undersupply of affordable housing within the district".
At the meeting, Deborah Smith, the agent for applicant South Lakes Housing, said the scheme would "revitalise the city centre" and be the "catalyst for the development of the Canal Quarter" area of Lancaster.
"I understand some concerns about loss of car parking but this car park is under-used," she said, saying there was "ample alternative provision" in Lancaster city centre.
Councillors debated the scheme, with Liberal Democrat Councillor Alan Greenwell saying the warehouse-style architecture of the homes was "brutal" and "reminds me of East Germany".
But Councillor Tom Fish, a Green, said that while it was "monolithic in some ways, I wouldn't call it East German".
"It is affordable, efficient, sustainable, with solar power, close to everything in Lancaster that you would need," he said.
"The car park is under-used, according to data. Any space that is under-used, is a waste of space.
"We need to be moving towards a sustainable future. It's exactly what we like to see."
Councillor Catherine Potter, from Labour, said: "I actually like the warehouse style, as it's in keeping with Lancaster's history and the historic uses of the canal.
"I think it's a positive thing that private parking isn't provided. It will be attractive to people who want to use public transport and who will walk to amenities."
She also mentioned the council's car parking strategy where "the council has agreed to a minimum number of parking spaces for the city centre."
Councillor Keith Budden, a Conservative, said he would support is because "it is an affordable site".
In a vote, all 10 councillors on the committee - Sandra Thornberry, Paul Tynan, Catherine Potter, Dave Brookes, Keith Budden, John Hanson, John Livermore, Tom Fish, Alan Greenwell and Louise Belcher - voted in favour of the recommendation to grant planning permission with conditions.
Committee members Martin Bottoms and Sue Tyldesley did not take part in the vote as they are on the council cabinet.
The new housing is part of Lancaster City Council's long-held ambition to develop the Canal Quarter area of the city, transforming derelict and underused land into a brand new neighbourhood.
There are also longer-term plans to build on car parks on St Leonard's Gate and Edward Street.
Read more: Plans go in for 39 new homes on Lancaster city centre car park - Beyond Radio
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