The proposed development includes a total of 10 new buildings
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Proposals to redevelop the seafront at Hove in East Sussex look set to go ahead after the government said it would stand by the council's decision.
Brighton and Hove City Council was told by officials they would not be calling in the application for the King Alfred site to go to a public inquiry.
In March, developers Karis were given the green light by councillors to build 750 flats and a new leisure centre.
Opponents of the scheme had hoped the government would reverse the move.
But on Friday, the Government Office for the South East announced it would stand by the decision taken by the city council's planning committee on 23 March to grant planning permission for it.
It also said it did not need to intervene because it did not affect national policies.
The development has been designed by world-renowned architect Frank Gehry and includes two controversial towers which have been described as "crumpled tin cans" and a "monstrosity".
The designs include a new sports centre, 750 residential units in two towers, shops, restaurants, cafes, bars, a doctor's surgery and a police office.
Council chief executive, Alan McCarthy, said: "We are pleased that the Secretary of State has allowed this decision to be taken locally."