LIDL is coming to South Croydon after the council gave the discount supermarket permission to build a store on Brighton Road.
At a planning committee meeting last night the food retailer were given outline permission to construct the shop as well as flats and car parking, bringing 40 jobs to the area.
The £12milion development will go up on a derelict site at 375-401 Brighton Road, next to the Honda garage and backing on to South Croydon Recreation Ground. It was previously a car sales room, petrol garage and multi-storey car park.
Lidl want to knock these down and put up three, four and five storey buildings. These will include a 1063 sq m food shop, 12 one-bed flats, 25 two-bed flats, five three-bed flats and 105 parking spaces.
Lidl currently have one Croydon shop on Church Street in the town centre.
Maria Gatland, councillor for Croham, said residents in the area were split in support for the development.
She praised Lidl for engaging residents in the planning process but expressed concern for the residents of Wyche Grove, which backs onto the development.
Cllr Gatland said the flat's balconies would overlook the gardens of Wyche Grove, and that there would be a loss of amenity.
She said: "There is a 50/50 split of people who want it and don't want it. I am concerned it will destroy local businesses and suck the life out of the area.
But she added: "There are many people who have contacted me and are keen to have it there."
Of 39 responses to the planning application only five people objected, including cllr Gatland.
Chris Young-Wootton, Lidl property director, said the housing will include 16 affordable flats.
"This recognises Lidl's recognition of what is important to the council and to providing affordable housing in the borough," he said.
Mr Young-Wootton added the structures had been designed to blend in on Brighton Road.
Council planning officer Pete Smith said alternative locations for the supermarket had been looked at but there were none.
He said there will be a reasonable distance between the development and Whyche Grove and that overlooking would be minimal.
Councillors agreed unanimously to give Lidl outline planning permission..
Councillor Chris Wright said: "The site desperately needs developing and I am sure it will be beneficial to many people in that area.
"I am sure the appearance will be better than the multi-storey car park. It couldn't be worse."
Councillor Paul Scott, meeting chair, said the matter will be brought back to the council if they are unhappy with how it progresses.
He said: "It is positive the developer and Lidl are working together. I am happy with the way the scheme is going."