The proposal to transform a vacant block into a multi-level apartment complex has been welcomed by surrounding businesses and residents.
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Wagga City Council is in receipt of a development application for two towers to be constructed on Sturt Street, behind Romano's Hotel.
The towers will comprise of 67 residential units, two penthouses and ground-floor commercial spaces.
Central resident and accountant Miles Curran said the CBD is lacking a mix of one, two and three-bedroom apartment options.
"Especially [needed] in town, bar a few apartment buildings, there's not many and I'm a young professional and one or two-bedroom apartments are hard to get in Central," he said.
Mr Curran said while construction may cause disturbance to residents in the Kilnacrott complex during the day, there would be flow-on benefits to nearby businesses.
"I think businesses are already affected without any building going on," he said.
Chairman of the Riverine Club Richard Pottie said it was a positive move for this end of town.
"I think it's great for Wagga and all businesses within that vicinity will benefit from this development, including our club," Mr Pottie said.
"Lack of parking ... will be an issue during construction and more so ongoing as there is limited parking in that area, with the nearest parking located down near the beach precinct.
"I think overall, it's a very positive move."
Romano's Hotel owner Belinda King previously told The Daily Advertiser that she was not concerned by the construction and its potential to dwarf the hotel.
"We're really encouraging the development ... we want to assist where we can," she said. Green Apple Dentistry, neighbouring the site, were contacted for comment but they did not return calls.
In contrast, the proposal to amend the Wagga Local Environment Plan 2010 to reclassify community land on the corner of Morgan and Docker streets has received intense public scrutiny.
The Riverside proposal is expected to go on exhibition this wek.