A micro-suite building that did not get initial approval from city staff will move on to a public hearing.
At Monday's meeting, council voted to advance the project, which would feature 16 microsuites in a building on Belaire Avenue, that would be roughly 300 square feet each.
The rationale from staff was that the building didn't meet the official plans for that Capri-Landmark neighbourhood, which calls for bigger, denser apartment buildings.
Keith Funk is the developer's agent, and he told council the unique part of this property is that it won't get bigger, as it has the land on each side of the homes is owned and operated by the Okanagan Halfway House Society, as well as Freedom's Door.
"We're between these two given services, which are very difficult to re-locate if you had to re-position them in the city. They are established, and there's no real interest in changing them," he said.
"We have letters from both of those property owners in support of the project, so they're very keen on us moving forward, and seeing something happen."
He says both the Okanagan Halfway House Society and Freedom's Door say they have no interest in re-locating.
Mayor Colin Basran voted against the project, and says one of his concerns was setting a dangerous precedent.
"If we were to continue to continue on with projects like this one a piece-by-piece basis, we're actually not densifying our city to its fullest potential," he said.
"While I appreciate, yes, short-term, it does that. I think the longer-term vision is the one I'm looking at in this particular application. Which does hurt me a bit, because I love the design of the project. I think it's a phenomenal project."
Councillor Tracy Gray says she came into the meeting prepared to vote against it, but had a change of heart.
"I can completely understand staff's position, why they would come forth with a 'no' recommendation. However, I believe that we can move this to a public hearing, in light of hearing who the neighbours are, and that there seems to be little opportunity to maximize this space" she said.
An official date for the public hearing is yet to be set.