The Town Hall is backing scaled-back plans for an apartment block in the Romerils car park.
In November 2022., the retailer and builders merchants announced a proposed major regeneration of part of St Helier.
An apartment block up to ten storeys high has been part of Romerils' previous plans.
Islanders had mixed feelings about it, with some claiming St Helier is becoming a 'concrete jungle'. Others argued that more accommodation is urgently needed to address the island's housing shortage.
Under revised plans from Romerils, 53 new homes are now being proposed.
The retailer says it has listened to feedback and is submitting a more 'modest' scheme for its Dumaresq and Hue Street site.
It won't involve demolition of existing buildings. Instead, a new block will be added to the existing car park behind the store.
The latest design for homes on the Romerils site involve building on the existing car park.
St Helier Constable Simon Crowcroft says the parish will be supporting it.
"It is important that businesses and individuals have confidence in St Helier and continue to make these types of investments.
I know that the Roads Committee wanted to send a clear message of support, and believe these plans will help to regenerate this part of town."
Romerils says it will ensure that 15% of the new apartments will meet the affordable housing criteria.
The Roads Committee says it 'would have preferred' if the plans had more car parking, though the 18 resident spaces proposed are more than the minimum required under Planning guidance.
A planning application is expected to be submitted shortly.
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