Councillors have given support to Yorkshire Trading's plan to open a branch at the former Barclays Bank at Thirsk Market Place.
The proposal was recommended for rejection by an officer who said it could harm local conservation areas and could have an overwhelming impact on nearby homes.
The scheme will see the old bank and a new 545 square metre extension on the back of the building used by the store, creating two flats on the first floor.
While the Thirsk Town Council supported the redevelopment, historic England said it was worried that the plan would harm local conservation areas.
Prior to the councillors of Thirsk and Malton Area Planning Committee, Thirsk divisional members, Councillor Gareth Dadd and the North Yorkshire Council deputy leader spoke in favour of the scheme today (Thursday).
He said: “I don't want to see this opportunity waste for a former bank that can provide much-needed housing use.”
Cllr Dadd said the development would create much needed work and stop the building from becoming decayed.
He added: “We are a thriving market town. This is an opportunity we cannot afford and we should never miss out.”
The meeting heard that the application was revised following criticism of the scheme at a previous planning meeting.
The changes include wooden window frames and a redesigned sign instead of aluminum.
Councillor Lindsay Barr said: “My weight tends to fall to economic value and investment.
“I don't think the nature of the conservation area will really hit this.
“I think it can only improve that and I think it's balanced and economic benefits will outweigh the other benefits.”
Councillor Malcolm Taylor added: “Now we have corrections, so there's undisputed evidence that there's a fair amount of public interest, and for me it outweighs the potential weight of harm to conservation areas, so I'm happy to support this application.”
Support for documents submitted in the planning application states: “The proposal will help support existing communities by providing a wide range of products in town centres and reducing travel needs.
“A variety of good job opportunities are offered. The scheme protects existing market boundaries and contributions to conservation areas.”
The councillors voted to keep in mind that after certain conditions were agreed, the final approval left officers, leaving them with the application.