Planners have given permission for 48 homes to be created on the site of an old brewery and factory in Portslade Old Village.
The scheme is made up of 11 houses and 37 flats and includes a conversion of the locally listed Le Carbone factory building, in South Street, Portslade.
The landmark building, with its distinctive chimney, was built as a brewery in the 19th century and the outside will be preserved.
Some of the newer buildings on the one-acre site will be demolished and 7,255 sq ft (674 sq m) of floor space will be created for employment.
This is expected to house the Phoenix arts organisation, providing cheap studio space, as well as community space and a café.
The developer PGMI Portslade expects the scheme to create 40 jobs. Seventy jobs went when Mersen – latterly the name for Le Carbone – ended production at the site, switching the work to the north east.
Councillor Leo Littman, a former Portslade schoolboy, raised concerns about the loss of employment space at a meeting at Hove Town Hall this afternoon (Wednesday 9 August).
And fellow Green councillor Phélim Mac Cafferty flagged up worries about drainage, given previous floods in the Old Village.
South Portslade ward councillor Les Hamilton told the Brighton and Hove City Council Planning Committee: “This is a good application in difficult circumstances.”
But he spoke about parking pressure in the area and the impact on access to neighbouring homes.
His concerns about parking were supported by Councillor Penny Gilbey who also spoke about flooding in the area.
Transport consultant Richard Fitter told the committee: “All parking can be provided on site.”
Councillor Joe Miller questioned the limited provision of affordable housing. The scheme proposes two options – either two of the two-bedroom houses and a payment of almost £20,000 or a payment of £126,000 to Brighton and Hove City Council.
Overall the developer will give the council about £200,000 in cash – known as “section 106” money – to support local transport, open space, indoor sport and local schemes.
About two dozen people objected to the plans, mainly with concerns about road safety and parking.
Councillor Carol Theobald said: “It will be wonderful to see the renovation of that historic building and chimney.”
Councillor Miller and Councillor Adrian Morris welcomed the housing despite the loss of employment floor space.
And Councillor Littman supported the plans for “a wonderful building”. He said: “It’s a good use of the space and it’s a sympathetic design.”
He pointed out that the Phoenix – named after a brewery “rising from the ashes” of a previous brewery in Brighton – was now to have a base in another old brewery building.
The plans were approved by ten votes to one, with only Councillor Gilbey against.