A 12-story building will rise in the Ironbound section of Newark -- the first such development under a new, yet controversial measure that allows much taller buildings to sprout near Penn Station.

The Central Planning Board on Monday approved a 403-unit residential building with 3,300 square-feet of retail space along 28-50 McWhorter Street and 51-57 Union Street, despite some pushback from members of the community.

The property is currently an unused surface parking lot, owned by Jose Lopez, president of J&L Companies.

"I grew up in the Ironbound and went to school and worked within three blocks of this property, so I feel an obligation to be respectful of the existing community," Lopez said in a statement prior to the approval of 55 Union. "The three blocks east of Newark Penn Station are underutilized and, given their prime location, logical areas to build a vibrant corridor of commercial and residential activity."

But some neighbors and other residents say the project is just too big and would ruin the character of the surrounding area, mostly comprised of townhouses and lower buildings.

"It's way out of scale," said Anker West, an architectural designer at The Dietze Building, which sits across the proposed development. "It's much too large for the walkable fabric of the Ironbound ... there's no 400-unit building that I know of in the Ironbound, it's really killing the neighborhood quality."

PLANewark, an association of local professionals advocating for sustainable development, has also mounted a legal challenge against the new MX3 ordinance that allows 12-story buildings in the area; 55 Union is the first project proposed under the measure.

The MX3 ordinance was approved by the City Council last year and increases the maximum building height in a six-block section of the Ironbound from eight stories to 12.

PLANewark's lawsuit contends the ordinance is inconsistent with the city's master plan and that residents were not given proper notice of the zoning changes and were not allowed to comment on the measure during a public hearing.

The group says if the ordinance is overturned in court, the 403-unit building will be illegal.

James Powell, a spokesman for PLANewark, said he was not against development but that such densities were out of scale for the area.

Lopez said he had met with the community and over the last year, redesigned parts of the project based on their feedback. He said the development was "thoughtful" and would "reflect the unique character of the neighborhood."

"It's incumbent upon us to be mindful of the community and to make things better, but objectors will always exist, especially when you're the first to develop under a new zone," he said.

Seth A. Grossman, executive director and CEO of the Ironbound Business Improvement District, said the city needed to grow and attract more people.

"This location has been one of the most troublesome locations in our district as far as negative urban issues, to have this development coming online, a good developer involved -- it's just great," he said.

The Ironbound section of Newark hosts the popular Portugal Day Festival every year and is well known beyond city limits for its dining options and Portuguese restaurants.

Grossman said the 12-story building would eventually be one of the smaller buildings in the area: The city council also agreed to boost building densities along the riverfront from 10 to 25 stories in some areas and from 30 to 40 stories in another.

Karen Yi may be reached at kyi@njadvancemedia.com. Follow her on Twitter at @karen_yi or on Facebook.