Members of the Formartine Area Committee have granted permission for the development of eight flats and retail unit at the former Meldrum Motors site.
The plans for the site at Market Square, Oldmeldrum were discussed on Tuesday, August 22.
Councillors previously discussed the application at a meeting back in June and decided that a site visit should be carried out.
This was undertaken before the meeting began on Tuesday.
The application sought for the demolition of the existing garage building to be replaced with a retail unit, eight flats and associated access road and car parking.
The shop will face onto Market Square with the flats running towards the rear of the development.
Two 1-bedroom flats will be located above the shop, while a block of three 2-bedroom flats and three 1-bedroom flats will be featured on the development.
A new access road will be created to the west of 4 Market Square which will lead to private and retail car parking.
The parking area will also include space for residential refuse bins and a cycle rack.
Two objections were received raising concerns about a number of issues.
The issues mentioned included overdevelopment of the site, negative impact on trading and biability of other shops in the area, traffic concerns, loss of privacy, noise and drainage.
Commenting on the application, cllr Jim Gifford said: “The site is long overdue for refurbishment as it’s not the bonniest building. Under a delegated grant we would need to cover the issues raised in discussions.”
Cllr Andrew Hassan added: “This is a genuine attempt to make a horrible looking building better.
“I agree with cllr Gifford, there are concerns about privacy and we need to encourage the developer to sort these.”
The decision was made after a vote with six to five in favour of granting permission.