Three cottages and a building adjoining the World War I Napier soldiers' club may be demolished to make way for a multi-level apartment block.
The plans are for a five-level development of 21 apartments, across the road from the Ocean Spa swimming complex.
But it is open to possible challenges because the height of the building at the northern end, nearest Napier Port, would exceed limits set by the Napier City Council in its Napier Hill Character Zone.
It requires a fully notified resource consent application.
The development is proposed by Lotus Marine Parade Ltd, but Hawke's Bay Today had been unable to contact director Byron Duncan for comment.