Residents have labelled the proposed 14-storey complex slated for the rundown Oxford Tavern site as "ugly" and say it will impede privacy and block sunlight and ocean views of neighbouring apartments.
Wollongong City Council received five submissions on the Oxford on Crown proposal during its exhibition period.
"The building overall is too imposing and too close to the frontage of all streets," one resident said.
"In short, this ugly building needs softening and needs to appear far less imposing than current drawings."
Other submissions said the proposed towers would block the nearby Platinum Apartments' morning sun and decrease the value of some apartments by removing their ocean views.
However, the council's review panel found the building design "suitable", "modern" and allowable under height controls.
"The planning controls for this area anticipate high-density mixed-use buildings with a height limit of 48 metres," the council said.
"This area is in transition and has not been developed to reach full potential.
"Platinum will receive the required minimum three hours sunlight from noon."