Southwest Properties and Toronto's Streamliner Properties Fund Ltd. have received the go-ahead to build a $140-million development on South Park Street at Sackville Street in downtown Halifax.

The city's design review committee voted in favour of the proposal Thursday night, despite a recommendation from city staff that the design for the former YMCA and CBC site be turned down.

Kourash Rad, who chairs the city's design review committee and works as an urban planner, said the decision came following a four-hour discussion, including back and forths with the architect and developer.

"It wasn't very typical to have a four-hour discussion but it was necessary," he said. "At the end of the day, we as professionals came to the conclusion that the project is for the betterment of the city … I really think this is going to be a jewel for the downtown."

The proposed mixed-use project includes two buildings — 290 residential units, underground parking, retail space as well as a new YMCA with swimming pools and a gym.

Some conditions recommended

City staff previously recommended the committee turn down nearly half of 14 bylaw variances requested by the developers.

The staff report said the proposed buildings would crowd the street, negatively impacting "compatibility and livability." It said one is "simply too close" to the neighbouring Paramount apartment building.

The proposed development will include apartments and a new YMCA fitness centre. (Southwest Properties)

But Rad said in the end, the committee's decision was unanimous and it recommended some conditions — including that balconies in some of the units have privacy screens and that a lane between the buildings be well lit.

"As a committee, it was decided that the variances that were being asked for are adding to the character of our city," he said.

"I think as a city we need to be proud of ourselves, and pat ourselves on the back, that we can go beyond a typical land-use bylaw and approve a project that is good for the city and downtown."

The old YMCA has already been knocked to the ground. Southwest president Jim Spatz has previously said the former CBC Radio building on Sackville Street will be demolished in February.

He said he hoped to start excavating that and the former YMCA site in May and June, with construction to be completed in 2018.