Orange City Council has approved a development application for a 98-room, multi-storey complex on Summer Street.

A public submission to the council expressed concern about the height of the building being 50 per cent above the limit for the site and the need to preserve the facade of an existing bicycle shop in the development.

However, council agreed they were not issues that would stop them approving the project. Council was told the height issue would not set a precedent for other CBD sites.

Cr Stephen Nugent said he could not see how the facade could be included and instead suggested a historic photo be included inside.

Cr Scott Munro said it would create jobs and be an economic stimulus for the city.

He said requiring an historic photo of the site be placed inside was unnecessary.

"I disagree with that. They're spending millions of dollars on a new building, they don't want to have to put something in a spot that has to be retained. Just let them go," he said.

"If we decide the old building has got to go, it's full of asbestos, it's not aesthetically pleasing that much. I would have liked to have maybe kept that facade if we could but sometimes you have to say bring on some modern architecture."

Cr Jeff Whitton said it was "great news" for Orange.

"This particular area has been a bit of an eyesore for decades," he said.

"Back in 2010 I think it was, we approved a similar DA to go there and I think this is going to fill a void.

"We have got investors who are confident in Orange to invest in an uncertain period in history and I congratulate them on sticking with it."

Cr Tony Mileto said it would assist visitor families.

"One of the floors is dedicated to three bedroom units for families and as we know Orange does have a lot of events," he said.

"A lot of families who come here don't have the opportunity to stay in motels of this size, so it is great to see the family focus."

Cr Jason Hamling said it would benefit sporting groups visiting Orange. "We hold junior carnivals and sporting [events] and they are always after more accommodation," he said.