Peacocks in Leamington town centre will make way for the construction of a new building which will include retail space and 26 apartments.
But none of the new homes at the new building in Warwick Street will fall under the 'affordable' bracket and no car parking is included in the plans.
The application has been made by David Tucker and Barbara Tucker of TAG Exclusive Properties Urban Ltd and would involve the building currently occupied by the clothing shop Peacocks being demolished and a new building being constructed including retail space on the ground floor and residential apartments consisting of nine one-bedroom apartments, 16 two-bedroom apartments and one three-bedroom apartment.
But in the planning documents provided by Warwick District Council the report says: "Due to the complexities of the site, the applicants have put forward a detailed viability assessment that demonstrates that the build costs of the development would not be viable if the requirement for affordable housing or any other contributions are required.
"The assessor has determined that the site has a benchmark land value of £1.9 million which is the threshold or benchmark for the scheme being viable for the provision of affordable housing and contributions."
Planning officers have recommended that permission for the plan should be accepted providing that the site is removed from the parking permit scheme.
But Leamington Town Council has raised concerns about this saying: "The council noted that Warwickshire County Council Highways now has no objection following the submission of the unilateral undertaking for the removal of parking permits for future residents.
"This will mean all residents of this development parking in surrounding residential areas and in Covent Garden - until its demolition - thus adding to existing parking pressures.
"A reduction in the size of the development would help ease this particularly as there is now no onsite parking provision proposed."
The council has also objected due to no affordable housing being in the plans and the "height, mass and bulk" of the proposed building.