Canmore's mayor says the town desperately needs a project that could see 150 new rental homes built for local workers.

The town hosted a public hearing Tuesday night as it considers tweaking some bylaws to allow the project to move forward.

Some residents have argued that the proposed location — on what's known as the Moustache Lands right next to the Trans-Canada Highway — is a poor choice.

Mayor John Borrowman says there aren't many other options.

Canmore Mayor John Borrowman says the town is in dire need of additional rental accommodation. (Dan McGarvey/CBC)

"When it comes to town-owned lands there's very limited choice," he said. "We have perhaps one other spot that we could envision a project of this scale on, but that piece of land is also deemed for affordable housing."

Some people at the meeting say the project's being pushed through too fast and without much input from them.

"We need to show we're going to do it responsibly and safely," says Canmore resident Jan Tafel.

"They just mark a little tick and they go, 'Oh, we had a public hearing.' They don't listen to us," Tafel said.

The hearing heard concerns about people crossing the highway, the visual effect of the project and its possible impact on wildlife.

But Borrowman says the homes are badly needed.

"There hasn't been any purpose-built rental built in Canmore literally for more than 40 years ... there's been zero," he said.

The proposed location for a new rental housing complex in Canmore is adjacent to the Trans-Canada Highay on what's known as the Moustache Lands. (Town of Canmore )

Three architectural companies have been shortlisted to submit their plans for the project by the end of this week.

The project could be completed by the end of 2018.