Nelson city council has given its initial blessing to a rezoning application and series of variances for a waterfront development.
That followed an hour and a half of discussion last night on Nelson Landing.
Mayor Deb Kozak says many questions were raised around public access and design details.
Nelson Landing could grow to 265 units at full build-out in 20 years.
It would also include small commercial spaces and a marina for nearby residents.
While council raised some issues, developer Allard Ockeleon believes they can be addressed.
A public hearing is expected in May.
Work on the first phase of eight units, approved last year, is already underway.