Liverpool-based social landlord Arena Housing is planning to build 131 apartments in Chester.
Officers at Cheshire West and Chester Council have advised councillors to approve plans for one and two-bed flats for people over the age of 55 when they meet on 17 January.
The accommodation will be built in two buildings, ranging in size from two to four storeys, on a council-owned car park off Wroxham Drive which includes parking from Northgate Arena Leisure Centre.
The council has received three objections from residents who say the scheme is too big for the area and will cause parking problems.
In a report prepared ahead of the planning meeting, the council conceded it "will be large in scale" but said it would not have a "detrimental impact on the wider environment".
"Any negative impacts identified could be overcome by the imposition of appropriately-worded planning conditions and legal obligations," said the report.
Councillors will also consider an application from the Liverpool-registered George Street Projects which wants to turn an old school building in George St into flats for 85 students. The plans have been designed by Liverpool's McHugh Stoppard Architecture.