A scheme to build 31 houses and 42 apartments and maisonettes will go before the city's planning committee next week, with a recommendation for approval.
The former car sales site at Ribbleton has been vacant since Perry's moved out in June 2016 and planning officers say it would be appropriate for residential development, despite claims that 73 new homes would increase traffic on an already congested Blackpool Road.
A report to be presented to the committee says the fact that the application is for 100 per cent affordable housing on a vacant brownfield site carries "significant weight" in whether it should be passed.
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The plans show 10 three-bedroom houses and 21 two-bed, with six two-bed apartments, 24 one-bed flats in a three-storey block, together with 12 one-bed maisonettes.
The scheme attracted eight objections from locals, with issues like traffic congestion, an increase in crime, loss of property values nearby and a lack of public consultation all raised.
The Friends of Fishwick and St Matthews also expressed concern that the plans do not include a children's play area. One objector suggested the whole site should be turned over to green space, a play area and sports facilities.
Planning staff say they had lengthy discussions with architects of the scheme, resulting in positive changes being introduced to the design of the site.
"Overall the amended design of the buildings and amended layout is considered to be acceptable in this urban location," says the planning report.
"The development as a whole would be a significant visual improvement on the existing appearance of the vacant and derelict site which is currently enclosed by fencing."
Three previous planning applications to develop the site included retail units, a gym and a food store were all withdrawn.