A leisure and retail scheme in an old department store in Grimsby has been given the go-ahead, against the advice of planning officers.
A six to five majority of North East Lincolnshire councillors approved the scheme to replace the existing superstore on Cleethorpe Road.
Grimsby family firm Ramsden Group said it would have been "ludicrous" to turn down the application.
The owners of Freshney Place shopping centre nearby objected to the plans.
Spokeswoman for Freshney Place, Amanda Austin, said the new Ramsdens would "directly compete" with existing shops in Grimsby and Cleethorpes town centres.
"We are extremely disappointed with the outcome, and that the proposed development has been approved against the recommendations of the planning officers," she said.
Freshney Place said the development would directly compete with existing shops in Grimsby and Cleethorpes
"Our objection was based on the proposed use of the development as a retail park, rather than the redevelopment of the neighbourhood centre.
"We are in favour of the area being redeveloped for the local community, but we feel the proposed use will directly compete with the existing and potential retail offer of Grimsby and Cleethorpes."
Managing director of the Ramsden Group, Nick Ramsden, said the multi-million pound redevelopment was a "once-only opportunity" to put new life and investment into the Cleethorpe Road area.
He has previously said a refusal would lead to Grimsby being left with "a potentially derelict site indefinitely".
Mr Ramsden said: "Towns and cities need new investment to attract new jobs, to improve the shopping and leisure opportunities.
"The vast majority of people we have spoken to want to see this scheme given the go-ahead."
Ramsden Group said it has been working on the scheme with Hull-based Wykeland group for the past seven years
